Zimbabwe to introduce gold coins as local currency tumbles

Discussion in 'Currencies' started by hardyakkagold, Jul 5, 2022.

  1. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    Zimbabwe to introduce gold coins as local currency becomes toilet paper again, they finally seem to be getting it, although with rampant corruption only the well-connected will benefit, as I can't see too many
    average Zimbabweans being able to afford 1-ounce gold coins!

    Zimbabwe's central bank said it would start selling gold coins this month as a store of value to tame runaway inflation, which has considerably weakened the local currency.

    The central bank governor John Mangudya said in a statement on Monday that the coins will be available for sale from July 25 in local currency, US dollars, and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.
    The central bank said the purpose of the coins would be "as an instrument that will enable investors to store value".
    The "Mosi-oa-tunya" coin, named after Victoria falls, can be converted into cash and be traded locally and internationally, the central bank said.
    The gold coin will contain one troy ounce of gold and will be sold by Fidelity Gold Refinery, Aurex and local banks, it added.
    Gold coins are used by investors internationally to hedge against inflation and wars.
    Australia is among the countries that have already introduced gold coins to the market.
    The Perth Mint began producing the Australian Gold nugget, also known as the gold kangaroo, in 1986.
    Last week, Zimbabwe more than doubled its policy rate to 200 percent from 80 percent and outlined plans to make the US dollar legal tender for the next five years to boost confidence.
    Soaring inflation in the southern African country has been piling pressure on a population already struggling with shortages and stirring memories of economic chaos years ago under veteran leader Robert Mugabe's near four-decade rule.
    Annual inflation, which hit almost 192 percent in June, cast a shadow over President Emmerson Mnangagwa's bid to revitalize the economy.
    Zimbabwe abandoned its inflation-ravaged dollar in 2009, opting instead to use foreign currencies, mostly the US dollar.
    The government reintroduced the local currency in 2019, but it has rapidly lost value again.
     
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  2. STKR

    STKR Well-Known Member Silver Stacker

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    Lol. The nugget is also known as the Gold Kangaroo o_O;)
     
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  3. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    Well, I did copy and paste that article from the ABC, so you have to give them some slack, they are not too bright over there.

    Although from 1989 they were known as gold kangaroos by those dumb asses who could not read, so not a completely fake statement.
     
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  4. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    [​IMG]

    Dear Zimbabwe......how did that change in government 40 years work out for you?
     
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  5. hardyakkagold

    hardyakkagold Well-Known Member Silver Stacker

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    Fark, now they are putting serial numbers on 1 oz bullion coins!

    I think I will pass on this one, that is one of the reasons I don't like bars and ingots [too easy to trace the trail when numbered]

    As for opting to place in the safe custody of bankers:pLOL

    "Each coin will have a serial number," Zimbabwe's central bank said in a press release. "Upon purchase, the buyer shall take physical possession of the coin and be issued with a Bearer Ownership Certificate. The buyer or holder of the coin may opt to place it in the custody of bankers of own choice in which case a safe custody certificate/receipt will also be issued."
     
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  6. GoldenEye

    GoldenEye Well-Known Member Silver Stacker

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    Next they'll be adding a RFID chip so they can scan it as you enter the airport.
     
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  7. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    They'll be a nice oddity once they get in the wild ie ex-Zimbabwe and into the secondary retail / stacker markets.
     
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  8. TreasureHunter

    TreasureHunter Well-Known Member

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    That coin would make a great collector's item. I hope they put Mugabe on it :D
     
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  9. l***g

    l***g Well-Known Member Silver Stacker

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  10. Oddjob

    Oddjob Well-Known Member Silver Stacker

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    Looking forward to seeing the fakes appear on Fleabay in the not too distance future.
     
  11. MLP

    MLP Member Silver Stacker

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    Just my opinion but the design on that coin in the photos looks cheap and dodgy. I think the Krugerand looks more "professional" and it's something like 55 years older.
     
    Last edited: Jul 26, 2022
  12. Davros10

    Davros10 Well-Known Member Silver Stacker

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    I'm seeing Victoria Falls and Coat of Arms. No Dog?
     

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