Gold News

Zimbabwe increases gold price by 757%

The central bank of Zimbabwe has increased the price of gold by a massive 757 per cent in order to cover rising production costs and curb smuggling, Thomson Financial reports.

Gideon Gono, the bank's governor, said: "With immediate effect, the support price has been increased from the current 350,000 Zimbabwe dollars per gram ($1,400 on the official market, but $2 on the parallel market) to three million Zimbabwe dollars per gram.

"As a country, our gold production levels have lately fallen victim to escalating costs as well as elements of indiscipline, sidemarketing and smuggling."

An economist said the previous price made no sense, but added that production of gold in the African country - which has fallen rapidly in recent months - is not likely to increase quickly.

"Despite the price review this does not mean production will suddenly increase since the gold mining industry does not have control in the supply of electricity," he said.

Low production levels have been blamed on factors such as a lack of vital materials such as cyanide, as well as people smuggling the yellow metal out of the country where it can be sold at a higher price.

The Zimbabwe Herald reported that three illegal gold dealers were arrested in Kadoma last week, after they were caught with around 270 grams of the metal.


BullionVault-cube-18223951-ADNFCR

See all articles by Gold Bug here.

Please Note: All articles published here are to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please review our Terms & Conditions for accessing Gold News.

Follow Us

Facebook Youtube Twitter LinkedIn

 

 

Market Fundamentals