Closing gold trading floors, a sound decision: gold businesses, experts

Gold businesses and analysts have hailed the Government’s decision to shut down all gold trading floors by March 30, calling it a sound decision in comments they made to SGGP. 

Investors follow developments in gold prices at a gold trading floor in Ho Chi Minh City (File photo: SGGP)

After two years of trial operations, the floors have failed to contribute to the overall development of the economy, “merely creating jobs and contributing to budget revenues,” Dr. Nguyen Tuan Quynh, Ho Chi Minh City-based deputy general director of Phu Nhuan Jewelry JSC, said.

But he did not explain what else he expected the floors to do for the economy.

There was no control over their operations or protection of investors’ legitimate interests as a result of the lack of regulation, he said.

So the decision to suspend the gold trading floors until comprehensive regulations are passed is a sound one, he said.

Trading gold at these floors had become akin to gambling, Prof. Nguyen Quang A, an economic and political researcher, said.

With investors indulging in speculation rather than investment, he warned this could cause risks to the entire financial system.

Since gold is not only a commodity but also has some monetary functions, its trading through accounts must be controlled by the State and not be managed loosely as it has been during the last two years, he said.

He called on the State Bank of Vietnam to make recommendations to the Government for issuing new regulations for gold trading floors so that they can resume operations with a sound legal framework.

By Mai Thi – Translated by Quang Hung

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