Smaller affordable gold coins expected in November
Smaller Mosi-Oa-Tunya gold coins are expected to go on sale in November from the Reserve Bank of Zimbabwe, Central Bank governor Dr John Panonetsa Mangudya has said.
Rudairo Mapuranga
According to Mangudya, the smallest coin containing just over 3.11g of gold, will, according to the current gold coin price, cost US$188.48, or local currency equivalent at the interbank rate.
“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 the sale terms and conditions shall remain the same as the current trading arrangements of the gold coins in circulation,” Dr Mangudya said.
The RBZ last month introduced gold coins, known as Mosi-oa-Tunya, onto the market as a store of value.
The gold coin, weighing one troy ounce or 31,1 grammes, with a purity of 22 carats, is available for sale in both local and foreign currencies at a price based on the prevailing international price of gold and the cost of production.
The gold coin, which is sold with an accompanying bearer certificate, has characteristics which include, Liquid Asset Status; Prescribed Asset Status; Can be used as collateral; Tradable and can be bought back after 180 days.
The price of the gold coins is determined by the London Bullion Market Association (LBMA) PM to Fix gold price plus a margin of 5% to cover the production and distribution costs. The price of the gold coin on the date of the initial release, 25 July 2022, was US$1,823.80 or ZW$805,745.35 in local currency. Fluctuations will be experienced in the US$ and ZW$ prices as a result of the movement in the international price of gold and the exchange rate.