Lukewarm interest in Vietnam’s first gold auction after 11 years

Just two companies submitted bids to buy 3,400 taels of SJC-branded gold bars, or 20.2% of the volume offered, at an auction held by Vietnam’s central bank Tuesday.

It was the first auction of its kind held after 11 years.

The bidders bought the metal at VND81.32-81.33 million ($3,195) a tael, the State Bank of Vietnam (SBV) said in a statement.

State-owned Saigon Gems and Gold Company (SJC) quoted its bullion at VND80.5-82.8 million ($3,253) a tael for buying and selling at 2 p.m. Tuesday, down VND500,000 for buying and unchanged for selling from the day’s opening. Corresponding prices at Monday’s close were VND81-83.5 million a tael.

Each bidder is allowed to place a bid for between 1,400 taels (14 lots of 100 tael each) and 2,000 taels, according to SBV rules. They are allowed to register one bidding price, equal to or higher than the floor price set by the central bank, with increments of VND10,000 ($0.39).

The SBV had cancelled its Monday auction due to a lack of interest from participants.

Of the 26 banks and companies that have established gold trading relations with the SBV, 15 are eligible to participate in the auctions.

The SBV resumed gold auctions after Prime Minister Pham Minh Chinh earlier this month requested it to act immediately to bring down the disparity between domestic and global prices, which stood at VND13 million ($511) a tael.