Gold Coins Safer Than Currencies - RBZ
The Reserve Bank of Zimbabwe (RBZ) says it introduced gold coins last month as a store of value as the gold price is more stable compared to other commodities.
Azvinandava Saburi, director of financial markets at the RBZ, said that even though there are risks in trading in gold, the yellow metal is more stable than currencies, especially during a time of heightened geopolitical tensions.
Saburi made the remarks while addressing Members of Parliament from the Parliamentary Portfolio Committee on Mines and Mining Development during a mining workshop in Kariba. He said:
The prices of gold are always changing. That is why I said you are taking a risk (in buying gold coins).
We have reduced the number of risks, but the price risk that is on the gold and the volatility of the gold price is lower compared to other commodities.
There is a school of thought that says when there is tension in the world, the only safe haven is gold.
So, a lot of people are actually going for gold because of what’s happening in the geo-politic.
A lot of people are not comfortable holding currencies because they are more volatile than gold.
They see gold as a safe haven because it has more stability than currency, which is affected by politics.
RBZ governor John Mangudya released the first US$3.6 million worth of gold coins on 25 July.
In his Mid-Term Monetary Policy Statement released on Thursday, 11 August 2022, Mangudya said the RBZ will introduce into the market smaller units of gold coins in mid-November 2022. He said:
Following the successful launch of the gold coins on 25 July 2022 and in response to public demand, the Bank shall introduce and release into the market gold coins in smaller units of a tenth ounce, quarter ounce and half an ounce for sale with effect from mid-November 2022.
The features, characteristics and sale terms and conditions shall remain the same as the current trading arrangements of the gold coins in circulation.
More: NewsDay
