Buying gold bullion to be riskier under new law

Jan 9th at 13:13

09-01-2013 13:13:08+07:00

With some 2,500 licensed gold-bullion trading facilities set to replace tens of thousands of unqualified such businesses countrywide starting January 10, buying the precious metal will become more risky, as customers will be fined if they conduct transactions with an unlicensed trader.

The 2,500 licensed gold bullion traders are branches of 22 banks and 16 businesses that meet all of the conditions to trade the precious metal, while the below par facilities are required to stop their gold trading business.

The number of gold trading facilities in Ho Chi Minh City will thus drop from more than 3,000 to only 900.

“The public will be safe when buying or selling their gold bullion at the licensed trading spots,” said Nguyen Hoang Minh, deputy director of the HCMC branch of the State Bank of Vietnam.

It will be risky for customers to intentionally work with the unlicensed ones, as they will receive heavy fines should the authorities detect their activity, he added.

The new rule has ignited concerns from gold holders, as they may not know where to legally buy gold bullion in case their familiar trading spots are no longer licensed to sell the precious metal.

“I used to trade gold bullion at a gold shop on Le Thanh Ton Street, and I don’t know about the addresses of several licensed gold trading facilities as publicized in the newspaper,” said Van, a District 1 resident.

Van said there should be a sign to indicate which facilities are licensed to trade gold bullion.

“Otherwise gold holders may accidentally violate the law if they trade with an illegal gold shop,” she said.

There are in fact no indications to tell a licensed gold shop from an unlicensed one, Tuoi Tre reporters observed.

In response, Minh said the central bank has ordered the licensed gold bullion traders to post their certificates on their counters for customer reference.

Finding ways

With the implementation of the ban just one day away, unlicensed gold shops are finding ways to maintain operations in accordance with the new regulation.

“I will stop listing gold prices on the display boards at the shop, and will only transact with familiar customers,” said C, who runs a gold shop in District 8.

Other shops still quote gold prices but no longer display the precious metals at their counters.

Meanwhile, T., a gold shop owner in Tan Binh District, said there is no need to worry, as traders will find ways to continue to sell gold bullion.

Some will choose to conduct transactions via licensed banks.

“When a customer wants to buy gold bullion, I will buy from a bank and resell to him or her, and the payment will be transferred directly to my account,” revealed a District 1 gold shop owner, adding that all the transactions will be carried out at his facility.