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Gold trading floors now more favored than OTC
Nowadays, investors go to securities trading floors every afternoon not because they want to check accounts or make payments for deals, but because they want to make investment in gold.
Purchasing and selling gold has become more attractive than injecting money in stocks. Gold has become an attractive investment channel as the price of the precious metal is expected to increase in 2009, as gold is always considered a safe harbor amid the uncertainties of the world’s economy.
Vietnamese investors nowadays not only purchase gold to hoard in the way they have been doing for years and years. They also purchase gold to resell to earn a profit.
Tran Tien Dung, an investor, who calls himself the ‘loyal stock investor,’ has also jumped into the gold trading floors to make transactions after he saw ‘big waves’ on the gold market. Dung said that it is not so difficult to earn a profit with gold investments. Moreover, he said, if gold trading floors are organized in an open manner (with connection with world’s market), all investors may earn profit.
Analysts have predicted the strong development of the gold trading floors in Vietnam as they said that specialized commodity markets have been developing in the country. Investors, in the future, would hear about the establishment and make transactions on rice, coffee or crude oil trading floors.
Having realized that more and more investors have left the stock market for gold trading floors, a lot of securities companies have joined forces with gold trading floor runners to set up agents receiving orders from investors.
It is estimated that approximately 10 gold trading floors are operational. VGB has been cited as the gold trading and investment company that has accepted the biggest number of securities companies acting as their agents for receiving investors’ orders. 30 securities companies have been serving as agents for the centre.
A lot of securities companies have reportedly been willing to serve as agents for gold trading floors. By doing so, they can take full advantages of the material facilities, technology and employees they have. Besides, the services will bring money to them at the time, when the stock market continues falling down.
Lam Minh Chanh, General Director of Indochina Securities Company, which has just joined forces with VGB opening an agent, said that in the context of the gloomy stock market, the service proves to be support for securities companies.
Regarding the legitimacy of the securities companies’ acting as agents for gold trading floors, Nguyen Thanh Ky, Secretary General of the Vietnam Securities Business Association, said that the Civil Code allows institutions and individuals to do things not abided by the laws.
Ky said that as the Securities Law does not mention the serving by securities companies as agents for gold trading floors, and companies should follow the Enterprise Law in providing the service.
VietNamNet/DTCK
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