Wednesday, 24 October 2012

Habits Save The Vietnam Gold


Vietnam ADDICTION ages who like to hide the gold in the house than keeping money in bank leverage upon by the government. Pandemonium all gold prices continue to soar. Based on last year's World Gold Council, Vietnam buys more gold per capita than India and China. Domestic gold prices in Vietnam rose 18 percent higher than the world market price of gold, which saw an increase of 11 percent. Indeed habits already practiced the difficult scraped hereditary.
Although the price of an ounce (28.4 grams) gold bars in Hanoi over RM300 than anywhere else, but people still buy the communist country, said 60-year-old retiree, Truong Van Hue. "I still love the look of my savings in gold. It is safer for retirees like me. I can sell gold at anytime, anywhere when needed the money, "he said.

Although gold is considered as safe custody, but that the people who 'raided' gold shops Vietnamese government eyes open when they are faced with the inflation rate of 18 percent and the volatility of the local currency, please.

The government tried to slow 'gold fever' by trying to control the precious metals business after almost 20 years they gave official approval to the people to own and trade gold, even though it has been practiced since immemorial past.
Among the measures the government is trying to do last year was to introduce a decree or order placing the trade of gold bars Saigon Jewelry Company, the leading gold producer and trader in Vietnam under the control of the central bank.
The decree also limits the business of small-scale gold traders, reduce and prevent the surge in prices of wholesale investors boost precious metals business, which will continue to affect currency goyah.Buat dong which was already present, the government is also considering a second step that will force more than 10,000 gold shop gold bars out of business and just focus on selling only jewelry. "They want to control the gold. I can not say whether it's a good move or not. But here (Vietnam), we need economic stability, "said the manager at Phu Quy Jewelry Company.
Practical reason, most of the Vietnamese population would rather see their savings in gold. Even an interest rate of 14 percent offered by the bank to the people who keep the dong can not attract their attention not to mention it's far less than the cost of living increased by 18.6 percent last year.
Economic experts say, falling real estate prices and the stock market has recently fueled the purchase of gold and central bank also signaled that the dong currency may continue to be affected later this year. "People try to mitigate the effects of this downturn by buying gold," said former senior government economist, Le Dang Doanh.Minat for gold actually were already embedded in the community and even the history of Vietnam war and the endless wrangling makes this metal more valuable.
"Empire may fall, the currency can be changed but gold will continue to survive," said sociologist, Vu Duc Vuong.
Vietnam government not only limit the trade of gold, but will hold a massive campaign to encourage people store gold in bank and no longer hide in the house.
However, the details of the plan have not been publicized yet, but the bank said the government is considering ways to attract depositors by making an offer in terms of interest and past keselamatan.Bulan central bank governor said the government estimated that Vietnam has a population of 300 to 500 tons gold stored outside the banking system.
The privately owned store gold in bank would give an advantage to the authorities because it can be used as tools to stabilize the economy.
"If the benefits provided is higher and the bank can prove their credibility, I think 80 percent of the people would keep their gold in a bank," said the CEO of Agribank Jewelry Company, Nguyen Thanh.
Measures to curb the gold trade is initiated after a dramatic increase standard of living that trigger changes in Vietnam 'market-based socialism'. This is Vietnam's economic system, which entitles the population owning a business commodity production, goods and economics for two decades perkhidmatan.Pertumbuhan succeed in raising the status of Vietnam to middle-income countries in early 2011, based on the measurement of economic development Dunia.Tetapi Bank threatened by macroeconomic issues economy (the larger economic issues), including the ever-higher inflation and corruption.
Declining inflation will restore public confidence in the government and thus defuse 'gold fever', said Daonh. He added that the government should develop policies in line with the beliefs of the people that have the gold measures 'safer.' "If the policy is contrary to the will of the people, they will turn to the informal business more difficult to control," he said.
He estimates that 20 to 60 tons of gold smuggled into Vietnam every year.
Nevertheless, the population in Ha Trung Street in Hanoi, the center of the busiest business of gold, was similarly skeptical of the government's move.
"They will make more stringent regulations, but I believe there is a way for a business of gold bars," said a gold trader, Tran Hoang Long.
Source: The Straits Times, 18/02/2012

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