Gold against inflation

Against the U.S. dollar, the currency in Zimbabwe has lost about 37 percent. The Zimbabwean government says it wants to offer investors a platform to save and invest in gold. Pricing will be based on the international price of gold. A new means of payment and store of value will thus be launched. As early as July 2022, Zimbabwe issued physical gold coins to counter inflation. U.S. dollars, which are legal tender in the country, were also in short supply. The Central Bank of Zimbabwe wants to stabilize the Zimbabwe dollar, so gold is a suitable stable factor. The central bank is also increasing its gold reserves. The reasons are clear, hedging and preservation of value are in the foreground. Since last year, miners in the country have to pay part of their royalties in cash and precious metals.

Looking at the buying activity of central banks worldwide, it was strong in the first quarter with 228 tons of gold. This is a new record compared to the past ten years (2013 marked a record so far). Over the past four quarters, central banks have increased their gold reserves by a total of 1,228 tons of gold. This means they have soaked up about one-third of annual mine production. As to who the central banks were that bought heavily in the first quarter, there were only statements about half of the gold purchases, according to the World Gold Council. It’s still unclear which central banks soaked up the other half, but that’s nothing new. Central banks hold gold because of its price performance in crises and as a hedge against inflation. Private investors can hedge their portfolio with values of gold companies, for example with GoldMining or Golden Rim Resources.

GoldMining – https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ – owns gold and gold-copper projects in North and South America (Canada, USA, Peru, Brazil, Colombia) and a large block of shares in Gold Royalty.

Golden Rim Resources – https://www.commodity-tv.com/ondemand/companies/profil/golden-rim-resources-ltd/ – has the Kada gold project in Guinea. Diamond drilling is currently underway. Other projects also contain gold as well as copper, silver, zinc and lead.

Latest corporate information and press releases from GoldMining (- https://www.resource-capital.ch/en/companies/goldmining-inc/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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