The coins,
known as Mosi-Oa-Tunya, vernacular for the country’s world heritage tourist
site Victoria Falls, were introduced as an investment alternative and
instrument to absorb excess market liquidity and combat inflation.
The value of
the coins is tied to the international gold price, fluctuating with the global
market rate, plus a small production fee.
They have
become a lucrative investment for those who bought them, rising from an initial
price of US$1 823 on July 25, 2022, to US$3,040 yesterday for a 22-carat coin.
The coins,
primarily were acquired by institutional investors, such as pension funds and
individual investors, largely using local currency holdings.
“The gold coins
have proven a remarkably successful investment vehicle,” Princess Revai, a
Harare-based economist said.
“The returns,
exceeding 60 percent in US dollar terms in just over two years, have
demonstrated the effectiveness of this instrument in preserving and growing
wealth, particularly in a high-inflation environment.”
Gold has
traditionally been a good hedge during inflationary periods, and acts as a
haven for investors, especially cautious ones with low risk tolerance. Herald
0 comments:
Post a Comment