By Dr Masimba Mavaza- Gold is a valuable resource that humans have coveted for centuries.
Though the price of gold can be volatile at times, it is widely regarded as a safe, smart investment.
But this doesn’t mean it is the right fit for every portfolio. Many countries which had condemned Zimbabwe have decide to attack Zimbabwe’s life line so that they can bring about a regime change.
The talk about gold stealing in Zimbabwe and the excitement it is causing is meant to destabilise the Zimbabwean gold trade.
Gold is scarce. It’s also difficult to mine, and it’s tough to argue with that shiny luster.
In addition, gold does not corrode, so you can store it for the long term.
Before gold was turned into coins, people traded gold nuggets. As economies and nations evolved, many countries used gold to build confidence and back paper currencies.
Even though no country is on the gold standard today, many countries still hold large reserves of gold in case of economic collapse.
Zimbabwe is one of the countries with large deposits of gold.
Because of the intrinsic value of gold, you might think that buying gold is a good investment.
Since there is a significant demand for gold, the price rises earning you a healthy return.
Zimbabwe has seen dozens of investors who come to invest in gold because most important thing investors understand about gold is that it needs is seen as a store of value and not purely as an investment like a stock.
As a result, investors need to see it as a store of value. In other words, you invest in gold to retain your purchasing power.
Since gold holds its value, you can offset the loss of purchasing power of your dollars by investing in gold.
Gold jewellery represents the largest source of annual demand for gold per sector.
This has declined over recent decades, but it still accounts for around 50% of total gold demand.
India and China are by far the largest jewellery markets, together accounting for over 50% of the global total.
The Asian and Middle Eastern markets are dominated by demand for purer, higher-carat gold.
As a result the majority of Zimbabwe investors in Gold are from Asia and more specifically the Chinese.
Gold has unique properties as an asset class. Our analysis shows that modest allocations to gold can be proven to protect and enhance the performance of an investment portfolio, reducing volatility and minimising losses during periods of market shock.
Investors of all sorts are coming to accept gold as a reliable, tangible long-term store of value that has moved independently of other assets.
At $2 billion, the detractors are miffed by the run-away growth of the Zimbabwe gold sector. Two thirds of it is driven by the SME sector, a fledgling initiative of a mere decade since it was legalized.
It now supports over a million strong mining players. Their prosperity assured by global parity pricing and hard currency.payment of their gold product.
Gold plays an important part in global central bank reserves, and they are significant holders of gold.
The 2008 financial crisis prompted a fundamental shift in central bank behaviour towards gold, encouraging a reappraisal of its role and relevance in reserve asset management.
Emerging market central banks have increased their official gold purchasing, while European banks have ceased selling, and the sector now represents a significant source of annual demand for gold.
The same gold has pin-pricked the baloon of zimdollar inflation. The gold coin Musoatunya is now the reference point of the trading of foreign exhange.
The hard currency market has since jettisoned the fungible Old Mutual stock derivative of the Zimbabwe Stock Exchange.
The duet of the two fiat monetary units of Old Mutual Implied Rate of Exchange and US dollar of Federal Reserve Bank no longer run rooster in Zimbabwe.
This twin scoresheet is pregnant with geopolitical currency trading implications.
The legion of inverterated doomsayers are being forced to eat a humble pie as the goodwill well wishers marvel and applaud the new phenomenom of economic revival and growth that herald tantalising prospects of prosperity.
The uttely frivolous allegations of looting exist only in the sulking and fertile phantasies of the ilk of David Coltart and Hopewell Chin’ono.
The rank and file citizenry are contented with the sterling work of EDworks and the Second Republic.
They will not wash with the electorate.They will die with a whimper.
They definitely willnot help the fortunes of a comatose CCC in the impending National Harmonized Elections.. desultory pursuit of the regime change agenda.
While trends may be poised to accelerate, gold industry players will need to keep past lessons in mind or else risk repeating previous mistakes.
A new war to bring down Zimbabwe is now seen in the attack of
Zimbabwe’s gold market.
The point we all see is that there is a concentrated effort to attack Zimbabwe by tainting its gold market with stories of corruption. The end game is to force the world to refuse to buy gold from Zimbabwe as it will be tainted with corruption.
It is not a mistake that the attacks of Zimbabwe’s valuable mineral which has turned to the growth driver and the resurrecting agent of our economy.
In Zimbabwe the gold industry created value for shareholders over the past five years. its performance has started to improve and the economic boom in recent years has given our enemies the weapons to use against Zimbabwe.
Despite a few corrupt individuals the advent of high gold prices in 2020 catapulted the industry to new heights, gaining significant attention from financial investors due, in part, to global uncertainty and low interest rates.
Strong prices have delivered a well-rounded and solid performance by gold companies, which are expected to generate unprecedented cash flows.
This has pulled Zimbabwe’s economy which was on its death bed. It is this miracle glittering stone which has turned on a lot of negative scrutiny.
Zimbabwe has performed so well and this has surprised those who had written off it.
The new dispensation has M managed to bring gold on the international market.
Gold is used as an industrial metal in a broad range of applications, but demand is driven by the electronics sector which accounts for ~80% of gold used in technology.
The metal is ubiquitous in most consumer electronics and automotive applications, where its chemical and physical properties combine to make it irreplaceable in many high-end devices.
The trend of electrification is providing support for gold demand in the sector, with most types of semiconductor chips using the metal either as a coating, or in the form of thin bonding wires.
So in today’s world the demand for gold remains high and this has helped Zimbabwe to grow and those who are terrified by such a growth have used puppets like Hopewell CHIN’ONO to try and out a corruption narrative against Zimbabwe’s gold.
When inflation is on the rise, gold prices usually follow suit. This is because investors see gold as a hedge against inflation.
As paper money loses value, gold becomes a more valuable asset.
Even though there is a recession and high inflation in the whole world the stock market is performing well, and many Zimbabweans have more money in their pockets from the gold market.
As a result, there is a strong demand for gold from Zimbabwe.
Again it should be known that Zimbabwe and ZANU PF are eagerly awaiting for the Aljazeera so that we can strengthen our economy by weeding out the corrupt.
Zimbabwe works for the best interest of its citizens.
ZANU PF is not even worried about the over talked documentary.