Zimbabwe’s Central Bank To Start Sales Of Gold Coin In July

Zimbabwe’s Central Bank To Start Sales Of Gold Coin In July

July 7, 2022 0 By Jeanine Sanchez

As of July 25th, Zimbabweans will be allowed to purchase and own one troy ounce of gold coins each. Holders may sell the coins and serve as security for credit facilities and loans.

“In addition, they will serve as an extra source of value,” the central bank stated.

Coins Will Be Sold At Gold’s International Price 

The Reserve Bank of Zimbabwe (RBZ) issued a notice on July 4th. The information was to inform the citizens of the main features and qualities of the gold currency.

This notice is coming weeks after it disclosed its plans to release gold coins. Meanwhile, the people will be allowed to acquire gold coins based on certain factors.

These factors include the present price of gold and the cost of production. The announcement added that the sales would begin on July 25th. 

Additionally, buyers can buy the gold coins using the national currency or the US Dollar. The gold coins are named in the local dialect Mosi-Oa-Tunya which means the Victoria Falls.

According to the RBZ, the gold coin weighs one troy ounce each (31.10g). Also, the purity of each coin is 22 carats and has a serial number. The purpose of the serial number is for identification.

The RBZ has earlier noted that this gold coin will benefit investors in Zimbabwe. This is good for those who want to protect their investments from the nation’s escalating inflation. 

Coin Holders To Receive Ownership Certificate

Gold coins can also serve as an alternate store of wealth. Before now, it was illegal for individuals and unregistered organizations to purchase or store gold.

Meanwhile, only approved people or organizations can own or sell the physical gold. Fidelity Printers and Refiners remains the nation’s only buyer of gold. People who break the law risk the possibility of going to prison.

However, the RBZ guarantees investors they can “take physical custody of the coin. ” This means they can take the gold coins home. 

Owners who want to employ a third party’s custodial services will be given a certificate. The message also mentioned that owners of gold coins will receive a “Bearer Ownership Certificate.” 

The coin will be marketable both domestically and abroad. Also, it will have the prestige of a liquid asset, meaning owners can quickly turn it into cash. 

“Furthermore, the coin can be used as collateral for credit and loan facilities. If the owner decides to sell the coin, there is a buy-back mechanism,” the RBZ added.