Gold coins frenzy continues as 1500 units sold in first week

By Owen Mandovha

The introduction of gold coins by the Reserve Bank of Zimbabwe marks an important milestone in implementing government’s policy thrust of beneficiation to empower citizens and stabilise the economy.

The gold coins frenzy has taken the market by storm in one of the greatest interventions by government to offer diverse investment products for both individuals and corporates seeking to store value.

In a statement released this Monday, the Reserve Bank of Zimbabwe (RBZ) revealed that 1500 gold coins were snatched in the first week.

The RBZ said 85 percent of the sales were in foreign currency confirming the instrument’s role as a store of value. 

Mines and Mining Development Minister, Honourable Winston Chitando acknowledged that Zimbabwe has demonstrated its capacity to control the entire gold mining sector through beneficiation, allowing Zimbabweans access to the natural resource endowment.

“It is a big intervention by Governor and shows that we are indeed moving in the right direction to add value to our gold and now people can actually have possession of one. It resonates well with the NDS 1 of beneficiation,” Hon Chitando said.

There has been an overwhelming interest in the asset since its launch last week and the President of the Zimbabwe National Chamber of Commerce (ZNCC), Mr Mike Kamungeremu, who acquired the coins, says it will provide companies with a proper store of value, moving away from the past where the abuse of the US dollar was rampant.

“In the past companies only resorted to the parallel forex market for their cash demands, but it was only for storing value. But I’m reliably informed that banks have long list of orders of companies who need possession of the coins. I am one of the people who bought them and I have them in my custody.”

Financial analyst, Ms Happiness Zengeni noted that more assets can be derived from the move, including gold trusts to serve the interests of the public.

She said, “There is an opportunity to create investments out of gold units, not necessarily having one to own the entire unit, but allowing them to hold small units on larger investments linked to gold coins.”

The RBZ will release the second batch of the gold coins as demand continues to soar.

The post Gold coins frenzy continues as 1500 units sold in first week appeared first on ZBC NEWS.

Leave a Reply

%d bloggers like this: