Posted on 07/05/2022 11:35:52 AM PDT by dynachrome
Zimbabwe's central bank will start selling gold coins later this month to try and tame inflation by providing a store of value to the country's plunging currency and giving the population an alternative to the U.S. dollar.
The one troy ounce 22-carat gold coin will be called 'Mosi-Oa-Tunya' and will be available starting July 25. The name means "Smoke that Thunders," referencing Victoria falls.
"Each coin will have a serial number," Zimbabwe's central bank said in a press release. "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."
According to the central bank's governor John Mangudya, gold coins can be bought with local currency, the U.S. dollar, and other foreign currencies. The price will be set based on the international price of gold and production costs.
(Excerpt) Read more at kitco.com ...
So essentially a return to gold standard and away from from fiat currency.
“Zimbabwe also revealed plans to adopt the U.S. dollar as legal tender for the next five years”
2nd time they will have done this.
There’s one sure way to control inflation: stop printing money. The government needs to stop spending in excess of tax revenues, and fire excess government employees.
I imagine that these gold coins will become popular especially with Zimbabwe citizens as a way to protect their wealth considering how high their inflation rate is. I get the feeling that both gold and silver will soon become popular again everywhere.
That’s actually great news for Zimbabwe.
192% means that prices only tripled from the last year.
After going through hyperinflation, Zimbabwe prices are getting stabilized!
Sounds like they are not too far away from getting invaded for “democracy” and “LGBT rights”.
How is that NOT convertibility from Zimbabwe paper currency?
> 192%
We can catch up!
This is zimbabwe so one is compelled to ask what the “gold” is made of.
In the direction we are heading, ours will be worth as much as Zimbabwe's.
Can’t they just give every citizen there a 100 trillion dollar note, declare everyone is a zillionaire, and say crisis is over??
sarcasm.
Chinese tungsten, probably.
I could be a multi-billionaire!
(In Zimbabwe dollars)
How actual cash do I need?
🤔😆😜
Is that the rock creature from Galaxy Quest?
It has always looked like that to me.
The value of the hundred trillion dollar bills has gone up a lot. It would have been a great investment to have bought a stack of them when issued and sell them individually on eBay now. The biggest risk was if that wasn’t the last one and the quadrillion dollar bill ruled the resale market.
How is that NOT convertibility from Zimbabwe paper currency?
+++++
Convertibility just means you can buy the coins with Zimbabwe money. It does not mean the Zimbabwe currency has a gold reserve that backs their currency. They do not have that.
It’s not “gold backed” unless the face value of the currency is fixed to a certain weight of gold, and you can always trade it in for that amount of gold, regardless of what gold is trading at.
Just allowing them to buy a one ounce gold coin with the paper currency doesn’t make it gold backed. For example, we are allowed to buy one ounce gold coins with our paper currency - does that make the US$ gold backed? No!
Our silver certificates were “silver backed” because we could exchange a one $ silver certificate for a silver $, which was one ounce. The Federal Reserve notes we have today are nearly worthless by comparison.
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