Vietnam has made a remarkable move forward in its economic policy. Today, it has put an end to a 13-year state monopoly on gold trade and production. This ruling authorizes these actions by private actors that hold a license from the country’s central bank. Specifically, they can now freely and actively produce, export, and import gold bullion. These new regulations will strengthen the local gold market’s integrity and responsible business practices. They speak to the increasing global appetite, particularly given the growing economic decoupling between the US and China.
The decision coincides with record gold prices, fueled largely by growing purchases by Chinese consumers. Some believe that it’s buyers in China that are fueling the demand for “stateless” gold to these record levels. This increase is driving global gold prices through the roof. Indonesian gold miners optimistic about future Indonesian gold miners are very optimistic. They forecast prices for the precious metal to top 2024 levels in 2025.
Vietnam’s central bank has been upbeat about the reform. They argue that liberalising the gold market by allowing private players will attract more competition and enhance the speedy trade in gold across the country. This reform will make it easier for local and foreign investors to come in, revitalizing the economy across different industries.
Gill agrees Japan’s recent gold export boom should get us thinking about the possibility of gold smuggling in shadowy operations. To explain their recent jump in exports but still build the case for an underground economy that messes with local markets. As countries navigate these dynamics, Vietnam’s decision to allow private sector participation in gold production aligns with a broader trend in the Asia-Pacific region.
The Australian market is about to experience a complete metamorphosis. In fact, gold is on track to pass coal and become the country’s top export. This development is representative of a global trend increasingly favoring gold, driven by economic instability and escalating geopolitical unrest. The biggest thing that analysts say will shake up the market is the “extremely pronounced demand.” Countries such as Vietnam and Indonesia are poised to reap increasing dividends from this transition.