Gold prices may see some minor increases in the coming months but in the long run, the precious metal will likely lose its appeal, said industry experts and policymakers.

Vietcombank has become the first bank in Vietnam to stop offering SJC-branded gold bars on its website and sell them through its banking app from August 27.

Amid growing concerns over the challenges of purchasing gold through official channels, experts suggest that the State Bank of Vietnam should reduce administrative interventions and allow the gold market to operate naturally.

As gold prices soar and availability remains limited, many Vietnamese borrowers find themselves in a difficult situation, struggling to repay gold loans taken out years ago.

HCM City authorities have established a task force aimed at enhancing the monitoring of gold bar transactions in the city to tackle speculation.

The country’s total demand for gold bars and coins was 26 tonnes in the first half of this year, the highest level since 2014, according to the report.

The view that it is necessary to tax gold purchases so that people 'love' gold less, according to experts, needs to be done in a calculated way, not to tax arbitrarily, to avoid a tax on tax.

As gold prices in Vietnam soar above global market rates, a hidden crisis emerges. Traders, enticed by the lucrative profits, are employing increasingly sophisticated methods to smuggle gold into the country.

The State Bank of Vietnam (SBV) has urged the Ministry of Public Security to investigate and tackle instances of gold market manipulation.

To address current market instabilities, experts suggest considering a tax on gold transactions as a regulatory measure.

The State Bank of Vietnam (SBV) on June 7 refuted rumours about gold shortages in the market, affirming there is a sufficient supply of gold for legitimate demand in an effort to stabilise the domestic gold market.

As gold prices in Vietnam are much higher than the world price, smugglers have been trying every possible way, by air and road, to bring gold over the border to Vietnam for sale.

Residents in large cities have been lining up to buy SJC gold bars at outlets set up by commercial banks since yesterday, with many saying they have not been able to finalise any purchases.

Bank representatives affirmed there is no shortage of the precious metal and that demand for gold will be met.

Analysts held that the continuous decrease in the price of SJC gold bullion after it is sold directly by the SBV over the past few days has kept the gap at a reasonable level.

SJC-branded gold bullion is sold at 77.98 million VND (3,069 USD) per tael on June 4 as approved by the Governor of the State Bank of Vietnam (SBV).

The State Bank of Vietnam (SBV) on June 3 sold SJC branded gold bars to four State commercial banks and a gold and gemstones company at a stable price in an effort to narrow the disparity between domestic and global gold bar prices.

This strategic move aims to promote market stability and ensure a balanced gold market, rather than pursue profit motives.

Some companies have been found having very high revenue but low profits, despite gold price fluctuations and a big gap between buy and sell prices.

Along with taking administrative measures, monetary tools such as interest rates also play an important role in preventing asset bubbles, including gold.