The coins, primarily were acquired by institutional investors, such as pension funds and individual investors, largely using local currency holdings.
“The gold coins have proven a remarkably successful investment vehicle,” Princess Revai, a Harare-based economist said.
“The returns, exceeding 60 percent in US dollar terms in just over two years, have demonstrated the effectiveness of this instrument in preserving and growing wealth, particularly in a high-inflation environment.”
Gold has traditionally been a good hedge during inflationary periods, and acts as a haven for investors, especially cautious ones with low risk tolerance.
For income-seeking investors, the gold can be used as collateral, potentially creating opportunities with asset managers.
Given Zimbabwe’s currency instability at the time of their introduction, following periods of currency volatility, buying gold coins with local currency, has proven a sound strategy for long-term value preservation, even at a reasonable premium.
Inflationary pressures and currency instability further solidify the investment case for gold coins.
Upon purchase, buyers of the gold coins can choose to keep the coin themselves or deposit it with a bank of their choice, receiving a safe custody certificate or receipt in the latter case.
The coins are designed to be liquid assets, easily convertible to cash.
They are tradable both locally and internationally and can also be used for transactions.
The coins also have prescribed asset status, allowing institutional investors to use them to fulfil regulatory requirements for prescribed asset investments.
They can be used as collateral for loans and credit facilities, further enhancing their utility.
The central bank buys back the coins at the holder’s request, providing a guaranteed exit strategy.
Gold prices began 2022 robustly, fuelled by safe-haven demand due to the war in Ukraine and soaring inflation.
However, as the US Federal Reserve aggressively raised interest rates to combat inflation, gold prices declined, finishing the year slightly lower.
Prices recovered in 2023 as recession fears mounted and the US dollar weakened.
Heightened geopolitical tensions and persistent inflation further supported gold’s appeal as a hedge against uncertainty.
The upward trend persisted in 2024, with gold reaching record highs. This was driven by expectations of the Federal Reserve pausing its interest rate hikes, further weakening the dollar.
Continuing geopolitical risks and gold’s growing attractiveness as a safe-haven asset also contributed.
Global gold prices have remained steady in early 2025, maintaining the upward trajectory of recent years.
The gold coins are sold through the Reserve Bank and its subsidiaries, Fidelity Gold Refinery and Aurex. The coins can also be traded through local commercial banks and selected international banking partners.
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