Andrew
Online Reporter
ASSET management firm Zimnat has described the Reserve Bank of Zimbabwe (RBZ)’s gold coins, which are expected to be introduced into the market on July 25, as a good investment option, especially for institutional investors seeking to diversify their portfolios.
“In our view, investing in the gold coins presents a good opportunity for institutional investors to increase their regulatory compliance by investing in an asset with Prescribed Asset (PA) status,” said Zimnat in a recent note.
“In addition, it allows investors to apply Zimbabwe balances to an instrument that allows for inflation hedging and rate-linked returns that are generally uncorrelated to the performance of equity markets.”
According to Zimnat, the investment instrument suits investors that are looking to preserve value, since gold has traditionally been a good store of value globally.
The gold coins will be priced at a premium to the prevailing international price of gold to cover minting costs.
The RBZ said a maximum surcharge of 5 percent the prevailing international gold price will be applied.
Bongani Ndlovu
Online Reporter