Vietnam: Central Bank Orders Gold Sales

[Joanne98]

HANOI, Vietnam -- The price of gold in Vietnam dropped by more than 5 percent on Friday from the day before after the central bank told the country's biggest maker of gold bars to sell bullion to help narrow the gap with world prices.

Saigon Jewelry Co. (SJC) sold 28,000 taels of gold (33,880 ounces) on Friday compared with 10,000 taels on Thursday, a company official said by telephone from Ho Chi Minh City.

"The state bank has asked SJC to sell gold so that prices can be stabilised in line with the world market," said the official, who declined to be identified.

Gold was quoted at around 24.9/25 million dong ($1,353.60/$1,359) per tael at around 1000 GMT, about 5.4 percent lower than the 26.37/26.43 million dong quoted late on Thursday, according to SJC's website (www.sjc.com.vn).

Gold prices in Vietnam have been higher than world prices because imports are controlled and taxed, and sellers charge a premium for the commodity, which is widely used as a second currency and reserve of wealth.

On Friday afternoon, after the price fell, gold in Vietnam was still higher than world prices by about $63 per ounce, or 6 percent.

A central bank statement later confirmed that it ordered SJC to sell gold and said it would "apply necessary supportive measures" during the process of stabilising gold prices. It did not give further details.

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[xchrom]

1. Now that's interesting. Nt

[upi402]

2. MSNBC anchor Dylan Ratigan is my PIIGS bashin' hero

He ranted about this continuing dynamic. Broke a piggy bank too, gotta love a guy bustin stuff up.
He is a real patriot and 3 cheers to MSNBC for airing this guy, and others.

In Asia, gold has social value beyond the ego value here in America. Of course it's also got that solid stability that unstable nation states make very desirable to their citizens. Like ours now! And Europe.