Chronicle Editor
Nqobile Bhebhe, Senior Business Reporter
THE recent introduction of Mosi-oa-Tunya gold coins in the market as a medium of value preservation and other policy interventions by the Government present a window of opportunity for the private sector to invest on behalf of their clients, Old Mutual chief executive officer, Mr Sam Matekete, has said.
Following the introduction of gold coins by the Reserve Bank of Zimbabwe (RBZ) in July, the market has responded positively with higher demand for the coins from corporates and individuals.
As of last Friday, one gold coin was sold for US$1 841 or $1 019 761 in local currency.
Local banks are, however, temporarily not allowed to buy the gold coins for their own portfolios until the RBZ decides otherwise in line with developments in the economy.
Banks can only receive the coins from the Reserve Bank for onward selling to their customers on behalf of the apex bank.
In a recent interview in Bulawayo, Mr Matekete said as the private sector they were fully behind economic measures introduced by the Government to stabilise the economy.
“We’re aware that the Government is busy trying to ensure there is a response in stabilising the economy and we support that,” said Mr Matekete.
“We’ve seen that the interventions are giving us new opportunities to invest. For instance, the gold coins have become an avenue where we know we can invest in on behalf of our clients including those that may not be able to afford gold coins.
“That can be done for example through unit trusts. These are measures that we believe are going to have a positive effect and we strongly believe they will create opportunities for us to invest.”
Mr Matekete said investments were about being able to see stability and predictability into the future hence he said “whatever our authorities, regulators and policymakers do to stabilise the economy, will always be welcome”.
Initially, the central bank injected 2 000 gold coins with an opening selling prices of US$1 823 or $805 745 per coin, which excited the market with banks indicating that they were overwhelmed by demand from corporate and individual customers seeking a legal and sensible way of preserving value.
The apex bank said about 85 percent of the initial 2 000 gold coins were sold in local currency.
Weeks later, authorities injected an additional 2 000 batch of Mosi-oa-Tunya gold coins into the market. Now smaller gold coins, as small as a tenth of an ounce, are expected to go on sale in November to allow ordinary people to invest in them and store value for their local currency.
The smallest coin, containing just over 3,11g of gold, will cost US$188,48, or local currency equivalent at the interbank rate.
A majority of ordinary people holding extra cash who warmed up to the idea of investing in gold or preserving the value of some of their savings in gold, have complained that the one-ounce coins are far too expensive and have called for smaller coins.
In his latest mid-term monetary policy statement, RBZ Governor Dr John Mangudya said the apex bank would be releasing smaller gold coins mid-November to allow more buyers.
“Following the successful launch of the gold coins on July 25, 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-ounce for sale with effect from mid-November 2022,” he said.
Blessing Chizhande
Online Reporter