On the one hand, it damages market confidence and national finances, on the other hand, it promotes speculation and physical gold accumulation, making the economy susceptible to "gold hoa" and loss of resources.
In that context, the direction of Politburo member and Prime Minister Pham Minh Chinh on studying the establishment of a national gold exchange is a decision that brings many expectations.
Unlike short-term administrative measures such as organizing auctions or selling gold through the banking system, if the gold exchange is well designed, it will create a modern infrastructure for the market.
That is where subjects have access to public prices, participate in transparent trading, and do not depend on the psychology of "listening" or "watching goods" according to rumors. From there, domestic gold prices may gradually approach the world, ending the monopoly.
It is worth mentioning that the establishment of a gold exchange is not only aimed at stabilizing prices. Behind it is the mindset of transforming the way of operating the market: The State builds a foundation for the market to self-regulate by the law of supply and demand, with transparent supervision.
That transformation is profound reform, in line with the spirit of "The State creates" in a socialist-oriented market economy.
When the gold exchange operates properly, financial instruments such as gold certificates, futures contracts, gold ETFs... will appear to help people gradually shift from physical gold hoarding to civilized financial investment.
This is a way to free up the people's gold resource - estimated at about 500 tons - to serve economic development instead of being "hijacked" in the safe. At the same time, these products also help the market prevent risks, reduce virtual fever and protect investors from psychological shocks.
Of course, for gold exchanges to be successful, there needs to be a synchronous mechanism, modern technology and effective communication. The amendment of Decree 24 on management of gold trading activities needs to fully cover related financial products.
At the same time, there must be a mechanism to strictly control participating enterprises, such as the requirement to convert gold certificates to physical gold at any time to ensure liquidity. Technology infrastructure, especially blockchain applications and electronic invoices, also needs to be taken into account to prevent manipulation and smuggling.
Establishing a national gold exchange, when implemented, will be a measure of our ability to reform when shifting from control to creation. And it is also a way for Vietnam to take a step forward on the path of deep integration with the global financial system.
