Africa Day Medallion to be launched Thursday

Business Reporter
FOLLOWING the growing shift towards digital currencies and gold medallions as a stable store of value as compared to fiat money, the Africa Medallion Group — which is headed by businessman Mr Frank Buyanga — will on Thursday launch a $5 African Medallion Dollar (AMD).

Only 100 of the $5 AMD will be put in circulation, and holders will get certificates that will serve as confirmation and guarantee that they possess the genuine articles. In essence, medallions are usually held for the incremental value they gain over time.

Recently, as global financial markets become increasingly volatile, investors have been shifting their portfolios and investments towards more stable securities and havens. And most investors have unsurprisingly been put in gold. “With a limited (100) $5 (AMD) Africa Day Medallions put in circulation at a nominal price of just $5 (USD) each, demand is expected to rise in the future,” said the group in a statement last week.  “Any further purchases will be done in consultation with the 100 holders who will be notified through a closed loop trading system, a database incorporating each and every holder.

This gives all initial subscribers potential to secure greater returns in future.” It is believed that the new medallions are specially crafted with bronze and engineered as a symbol to commemorate the 54th anniversary of the African Union (former Organisation of African Unity), which was founded on May 25, 1963.

Though the guaranteed buy-back amount is fixed at US$5 for each $5 AMD, the future value will be determined in the trade amount. The group’s new initiative seems to have been buoyed by the successful uptake of the ten gold Pan African medallion coins in March last year, all of which have since been bought by South African businessman Mr Sandile Shezi.

The Durban-based entrepreneur is considered to be one of South Africa’s influential young persons.  “I see these medallions as the future global currency; you might have seen how well Bitcoin has been doing for the past few years.  “The only challenge with Bitcoin which is a cryptocurrency is that it’s online,” said Mr Buyanga then.

Mr Buyanga is a UK born Zimbabwe businessman who has ventured in various business projects for the past 19 years.

He also holds a degree in Economics and Finance from North London University (UK). While digital currencies — largely driven my modern technologies — are claiming a share, even though small, of global transactions, gold coins and medallions are slowly reclaiming their lustre. At the 46th World Money Fair that was held in Berlin, Germany in February this year, the Krugerrand coins, which were first produced in 1967 by Mint SA, a unit of South African Reserve Bank (SARB), were launched.

This year, the Krugerrand, which is considered to be the world’s most collectable gold coin, will mark 50 years after it rolled off the printing press. More than 50 million once-ounce gold Krugerrands have been sold worldwide over the past 50 years.

Also, only 1 967 limited edition 1967 Vintage Proof Krugerrands have been released.  Initially sold for 27 rand in 1967, the first minted coins are now worth about 46 000 rand each.

Though principally touted as a store of value, the medallions are expected to become tradable with time.