The Reserve Bank of Zimbabwe (RBZ) will release new gold coins this July, and these are the characteristics and features to look out for. B...
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The Reserve Bank of Zimbabwe (RBZ) will release new gold coins this July, and these are the characteristics and features to look out for.
Below is the full statement by the RBZ Governor Dr John Mangudya.
Pursuant to the resolution of the Monetary Policy Committee of 24 June 2022 to introduce gold coins into the market as a store of value, the Reserve Bank of Zimbabwe (“the Bank”) wishes to advise the public of the salient features and characteristics of the gold coin.
The gold coin shall be called the Mosi-Oa-Tunya Gold Coin with the following characteristics:
(i) Weight — one troy ounce.
(ii) Purity — 22 carats.
(iii) Identification — Each coin will have a serial number.
(iv) Ownership – 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.
(v) Liquidity and Tradability – The coin will have liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally. The coin may also be used for transactional purposes.
(vi) Prescribed Asset Status – The coin will have prescribed asset status and institutional investors can use it to meet regulatory requirements for prescribed asset investments.
(vii) Collateral — The coin can be used as security for loans and credit facilities.
(viii) Buy Back Arrangement — At the instance of the holder, the Bank will buy back the coin.
The gold coins will be available for sale to the public from 25 July 2022 in both local currency (ZW$) and United States Dollars (US$) (and other foreign currencies) at a price based on the prevailing international price of gold and the cost of production.
Pursuant to the resolution of the Monetary Policy Committee of 24 June 2022 to introduce gold coins into the market as a store of value, the Reserve Bank of Zimbabwe (“the Bank”) wishes to advise the public of the salient features and characteristics of the gold coin.
The gold coin shall be called the Mosi-Oa-Tunya Gold Coin with the following characteristics:
(i) Weight — one troy ounce.
(ii) Purity — 22 carats.
(iii) Identification — Each coin will have a serial number.
(iv) Ownership – 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.
(v) Liquidity and Tradability – The coin will have liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally. The coin may also be used for transactional purposes.
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(vii) Collateral — The coin can be used as security for loans and credit facilities.
(viii) Buy Back Arrangement — At the instance of the holder, the Bank will buy back the coin.
The gold coins will be available for sale to the public from 25 July 2022 in both local currency (ZW$) and United States Dollars (US$) (and other foreign currencies) at a price based on the prevailing international price of gold and the cost of production.
The coins will be sold through the Bank and its subsidiaries, Fidelity Gold Refinery (Private) Limited and Aurex (Private) Limited, local banks and selected international banking partners. Entities selling the coins shall be required to apply Know Your Customer (KYC) principles.
John P Manudya Governor 4 July 2022
Alloyed gold coins, like the American Gold Eagle and South African Krugerrand, are typically 91.7% gold by weight, with the remainder being silver and copper.
Traditionally (up to about the 1930s), gold coins have been circulation coins, including coin-like bracteates and dinars. In recent decades, however, gold coins are mainly produced as bullion coins for investors and as commemorative coins for collectors.
Traditionally (up to about the 1930s), gold coins have been circulation coins, including coin-like bracteates and dinars. In recent decades, however, gold coins are mainly produced as bullion coins for investors and as commemorative coins for collectors.
While modern gold coins are still legal tender, they are not observed in everyday financial transactions, as the metal value normally exceeds the nominal value. For example, the American Gold Eagle has a denomination of 10 USD, but a metal value of more than $800 USD (being around a half an ounce).
The gold reserves of central banks are dominated by gold bars, but gold coins may occasionally contribute.
Gold has been used as money for many reasons. It is fungible, with a low spread between the prices to buy and sell. Gold is also easily transportable, as it has a high value-to-weight ratio compared to other commodities such as silver.
The gold reserves of central banks are dominated by gold bars, but gold coins may occasionally contribute.
Gold has been used as money for many reasons. It is fungible, with a low spread between the prices to buy and sell. Gold is also easily transportable, as it has a high value-to-weight ratio compared to other commodities such as silver.
Gold can be re-coined, divided into smaller units, or melted into larger units such as gold bars, without destroying its metal value.
The density of gold is higher than most other metals, making it difficult to pass counterfeits. Additionally, gold is extremely unreactive chemically: it does not tarnish or corrode over time.
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