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According to a report released today on BullionStreet.com, gold dealers in Vietnam are feeling the pinch of export restrictions levied at the end of 2010. Due to regulations regarding the purity of bullion and jewelry, these dealers are being squeezed by a 10% export duty that’s imposed on gold bullion with a purity of 99.99% and gold jewelry with a purity of 80%.
The impact of the restrictions have already been felt among the Vietnamese goldsmith community, which has made make-shift adjustments such as watering down the purity of gold for export or resorting to smuggling out of the country. For buyers of Vietnamese gold jewelry, the impact will certainly reduce the competitive pricing of quality items as suppliers scramble to overcome the profit loss inflicted by the restriction.
While gold dealers continue to try and lobby the government for a lift on the duty, it is unclear whether the restrictions will impact the Vietnamese mining community in the long term. Toronto-based Olympus Pacific Minerals [OYM – TSX] has taken precautionary measures to mitigate the damage these restrictions posed.
Producing from two gold plants located in Vietnam, Olympus’ decision to move its refining operations was simple. Originally marked for export to a refinery in Switzerland, Olympus has mitigated the potential damage from the export duty by redirecting its supplies to a refinery within Vietnam’s borders. With consolidated production in 2011 from both its Phuoc Son and Bong Mieu Gold Plants, Olympus’ Vietnamese production is projected at 46,000 ounces for 2011. By refining in Vietnam, Olympus is not subjected to the export duty.
As the only major foreign-owned gold producer in the region, Olympus seems to have proved that the peril experienced by dealers. At this stage, it’s unclear whether the dealers will get their demands met. They currently are asking authorities to drop controls on import and export of gold, and to instead introduce sanctions on gold price speculation and other manipulative acts.
By G. Joel Chury
VantageWire.com
2 Comments
Dannel Ajai
Attn: Sir,
Attention to those who wants to buy real gold From Ghana;
If you want to buy gold without been scammed by all these so called gold sellers in Ghana. We are Mancore Ghana Ltd, we are well known Gold sellers and have a good track record We will deal with you direct with AA Refinery.
payment must be done in this AA Account as gold is already in AA
Mancore Ghana Ltd
Matel Account AA 41
Product: SELL AA MINERAL/GEOLOGICAL SURVEY GOLD DUST OR GOLD BAR
Specs: 92% OR BETTER
Quantity: 10KGS – 150KGS
Price: $46,000.00
Any body in Ghana that gives you below 46,000 is a scammer and beleave me you can’t have a successful transaction. As you will know 95% Gold seller in Ghana are scammers
More info: We selling our Gold true AA Minerals and ASAP VASA.Just let me know if you are interested. We do need real, serious and committed buyers for investment and long term contract, SPA and FCO will be sent on request
You can contact me on
Mr Dannel Ajai
Marketing Manager
Mancore Ghana Ltd
[email protected]
Mariam Ami
We are writing to you this time to advertise the availability of our
main products, alluvial gold and diamonds in bulk quantities.
We have Gold Dust,Gold Bar & Rough Diamond in stock for sale looking
for buyer worldwide to do long term business relationship with our
firm. As we
represent a large number of local surface mining, we are prepared to
provide quantities up to 400 kilograms of 24.karat alluvial gold
monthly
Price $25,000 per kilo
Quality: 22+. karat alluvial Au COMMODITY … … AU DUST PURITY
………. 97.87 QUANTITY … . 200 KILOS (1st DELIVERY ORIGIN … ..
GHANA DELIVERY … WITHING 5 WORKING DAY UPON RECEIPT OF SHIPPING FUND
Best Regards
Name GABINET MINING COMPANY LTD
Email [email protected]
Phone +233266251555