African Central Banks are turning to Gold to shield themselves from economic and geopolitical instability as well as to diversify their financial portfolios.
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The price of gold per ounce was $1,900 as at September, 2023. It is selling a year later at $2,500.
Despite the soaring prices, demand for the metal is expected to heighten in the next 10 months, according to the World Gold Council, an international trade association for the Gold industry.
Carlos Lopes, a professor at the Nelson Mandela School of Public Governance in South Africa, said: “In the last few years, because of inflation and all these movements for stimulation packages and the rest, the returns are extremely low.
“On the other hand, gold is going up in terms of price because these big banks are also going after gold as a protection. So, it is a very good investment to go to gold.”
According to the World Gold Council, It helps that African gold production has grown by 60% since 2010, higher than a global increase at 26%.
Zimbabwe launched a gold-backed currency in 2022 to curb inflation and volatility in foreign exchange rates.
