World gold prices cool down after a series of skyrocketing increases, while policymakers in the Philippines begin to debate, is it time to "sell" gold to preserve profits?
Bloomberg reported that Mr. Benjamin Diokno - a member of the Monetary Council of the Bank of the Philippines (BSP), former Governor of BSP, former Minister of Finance of the Philippines - advised BSP to consider selling part of its huge gold reserves.
According to Benjamin Diokno, "it is time to take profits" as gold prices show signs of correction and safe-haven demand is weakening.
Our gold reserves are too high. The proportion of gold in foreign exchange reserves is currently about 13%, much higher than that of central banks in the region, Diokno said on the sidelines of the Bloomberg Business Summit in Kuala Lumpur, Malaysia on October 27.
According to him, the ideal gold reserve ratio should only be 8-12% of total foreign exchange reserves - currently reaching about 109 billion USD as of September 2025.
BSP is said to have bought gold around $2,000 an ounce, and as prices doubled within a year, the question Is it time to sell? became the focus of discussion.
What if prices drop? - Mr. Diokno raised the issue.
Gold prices have risen more than 55% in 2025, largely thanks to safe-haven demand and purchases from global central banks. However, the strong increase has also warned analysts of the risk of "excessive buying", especially when the US-China trade tensions show signs of cooling down.
However, there are still conflicting views within BSP. Incumbent Governor Eli Remolona once affirmed that the bank is not speculating on gold prices, because "this is a risky investment with negative average yields".
However, he also acknowledged that gold plays a defensive barrier in the reserve portfolio.
In 2024, BSP was criticized after selling gold before the precious metal price continued to increase sharply, causing public opinion to think that this agency missed the "golden" opportunity. At that time, BSP explained the sell-off as part of a proactive reserve management strategy.
Mr. Diokno revealed that BSP has recently reallocated gold storage, moving a small part to France, while the majority is still in London (UK).
In addition to gold, the Philippine Central Bank also plans to diversify foreign exchange reserves - currently mostly still in the US dollar, but may expand to the euro, Japanese yen and Australian dollar.
Observers say that if BSP sells at this time, this move could signal that the global gold price adjustment cycle is approaching. However, if prices continue to rise, this bank may face criticism like last year.
As of 11:00 a.m. on October 28, Vietnam time, world gold prices continued to decrease by 0.93% to $3,968.23/ounce.
Regarding domestic gold prices in Vietnam, as of 10:37 a.m. on October 28, SJC gold bar prices were trading around VND145.6 - 146.6 million/tael (buy - sell).
The price of 9999 Bao Tin Minh Chau gold rings is trading around 147.9 - 150.9 million VND/tael (buy - sell).
