8,000 taels sold in most successful gold auction this year

By Quynh Trang   May 14, 2024 | 02:06 am PT
8,000 taels sold in most successful gold auction this year
A person holds a gold bar at a shop in Ho Chi Minh City. Photo by VnExpress/Quynh Tran
Eight businesses bought a total of 8,100 taels of gold Tuesday in the sixth auction organized by the State Bank of Vietnam, a surge in number of bidders and volume.

While several auctions have been canceled in recent weeks because of low participation, bidders Tuesday bought nearly half of the total volume (16,800 taels) that the central bank wanted to sell.

They paid VND87.72-87.73 million ($3,446.68) per tael, which is 1.43% lower than market price of VND89 million. A tael equals 37.5 grams or 1.2 ounces.

In this auction central bank has made some rule changes to allow more businesses to join.

It lowered the minimum volume from 700 taels to 500 taels while doubling the cap from 2,000 taels to 4,000 taels. This gave buyers a wider range of volume to place their bids.

The 8,100 taels bought Tuesday was the highest volume recorded in a series of auctions hosted this year.

In previous successful auctions the highest volume bought was 3,400 taels. At most there were only two buyers.

So far the central bank has sold 14,900 taels of gold in its auctions as part of an effort to increase gold supply to the market amid surging prices.

Gold bar price has been shooting up in recent weeks and repeatedly reached new historic peaks.

On Friday it soared to VND92.4 million per tael as shops ran out of inventory. It has fallen 3.67% since.

The last time the central bank sold gold bars was in 2013 when over 1.8 million taels were offloaded in 76 auctions.

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