|
Companies collect gold for export, despite modest profits
Gold exports in the first eight months of 2010 brought $2.4 billion, according to the Import-Export Department under the Ministry of Industry and Trade. This has helped curb the trade deficit at $7.53 billion.
Late last week, the world’s gold prices hit new peaks, while domestic prices went up accordingly. Retail gold shops are quiet these days, with few transactions. Meanwhile, gold trading companies are very busy collecting gold for export.
On September 16, anticipating that the world’s gold prices would increase that morning, gold companies tried to purchase gold. Prices quoted by domestic gold shops followed the world’s prices. Investors with gold to sell, tried to negotiate for the best prices. The gap between sale and purchase prices narrowed to 20,000 dong per tael.
According to Saigon tiep thi newspaper, an investor could sell 1000 taels of gold at prices equal to the sale prices quoted by enterprises.
A lot of gold shops reportedly delivered gold to export companies, but prices will only be fixed once the companies set up export prices. By doing so, gold shops can get the best prices. One firm told Saigon tiep thi that it had exported more than three tons of gold within three days, September 15-17.
There are some ten gold export companies that export gold in big quantities in HCM City, not including gold shops and small enterprises that export under the authorization of clients. These include jewelry companies belonging to Asia Commercial bank (ACB), Sacombank, Agribank, PNJ, Tan Van Hung and Kim Ngoc Phu.
Last month gold exports made by these companies were even higher than the volume exported in the peak period of May and June.
Nguyen Thi Cuc, a senior executive of Phu Nhuan Jewelry Company (PNJ), noted that previously, enterprises tried to collect gold for export when the domestic gold price was higher by hundreds of thousands of dong per tael than the world’s price. Now firms still try to export gold even when the prices are nearly the same or will rise even $0.5 per ounce.
The gap between domestic gold prices and the world’s is calculated with an exchange rate of 19,500 dong per dollar. With such a rate, the profit for every tael exported in the last month has dropped to 30,000 dong per tael, down by 20-30 percent from the profit in May and June 2010. However, in fact, exporters not only can get profit from gold exports, but also from the dollar price gap.
On September 15-17, some gold export companies sold dollars to commercial banks at 19,509-19,510 dong per dollar.
In related news, gold deposit interest rates have increased by two to three-fold over two or three months ago. More and more commercial banks have joined the race to raise gold deposit interest rates.
Viet A Bank, for example, on September 20 raised gold deposit interest rates to 1.35 percent per annum. Meanwhile, the highest rate now offered for gold deposits is offered by Phuong Nam Bank, at 1.5 percent per annum.
In the latest news, the gold price made a new record when it surged to 30.2 million dong per tael late yesterday afternoon, while the world’s price has exceeded $1282 per ounce.
vietnamnet, SGTT, Tuoi tre
|
