Zimbabwe wants to avoid an increase in the money supply through the gold standard.
Zimbabwe's currency is one of the worst in the world. Now Zimbabwe's President Emmerson Mnangagwa is striving to stabilize the currency in the country. The growth of liquidity is to be controlled and what better way to do this than with gold. The stability of the Zimbabwean dollar and the preservation of purchasing power would benefit the country's inhabitants. The exchange rate should be pegged to gold as a fixed asset. After all, the Zimbabwe dollar has already lost over 40 percent of its value since the beginning of 2024. In January alone, compared to the same period last year, citizens had to accept an increase in consumer prices of almost 35%.
This does not even include Zimbabwe's currency devaluation, as around 80 percent of transactions take place in US dollars. Inflation therefore has the country firmly in its grip. Hyperinflation destroyed the country's own currency back in the early 2000s. In 2019, inflation was a massive 175%, peaking at 800% in 2020. In January 2023, inflation was at 60 percent. So money was printed and made the problems worse.
Last year, the government had gold coins minted that citizens can buy and thus store value. Last October also saw the introduction of a digital payment system backed by gold. This means that everyday transactions can be carried out in gold and money printing is restricted. We can only hope that the government representatives will stick to linking the currency to gold. Gold retains value, also for investors in this country, so a look at gold companies is a must.
Tudor Gold - https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ -, for example, owns the promising Treaty Creek gold project (gold, silver, copper) in the Golden Triangle in British Columbia. An updated mineral resource estimate has just been released with significantly higher mineral resources.
With its Metates project in Mexico, Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - has an immensely large gold and silver deposit that appears very promising.
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
Zimbabwe's currency is one of the worst in the world. Now Zimbabwe's President Emmerson Mnangagwa is striving to stabilize the currency in the country. The growth of liquidity is to be controlled and what better way to do this than with gold. The stability of the Zimbabwean dollar and the preservation of purchasing power would benefit the country's inhabitants. The exchange rate should be pegged to gold as a fixed asset. After all, the Zimbabwe dollar has already lost over 40 percent of its value since the beginning of 2024. In January alone, compared to the same period last year, citizens had to accept an increase in consumer prices of almost 35%.
This does not even include Zimbabwe's currency devaluation, as around 80 percent of transactions take place in US dollars. Inflation therefore has the country firmly in its grip. Hyperinflation destroyed the country's own currency back in the early 2000s. In 2019, inflation was a massive 175%, peaking at 800% in 2020. In January 2023, inflation was at 60 percent. So money was printed and made the problems worse.
Last year, the government had gold coins minted that citizens can buy and thus store value. Last October also saw the introduction of a digital payment system backed by gold. This means that everyday transactions can be carried out in gold and money printing is restricted. We can only hope that the government representatives will stick to linking the currency to gold. Gold retains value, also for investors in this country, so a look at gold companies is a must.
Tudor Gold - https://www.commodity-tv.com/ondemand/companies/profil/tudor-gold-corp/ -, for example, owns the promising Treaty Creek gold project (gold, silver, copper) in the Golden Triangle in British Columbia. An updated mineral resource estimate has just been released with significantly higher mineral resources.
With its Metates project in Mexico, Chesapeake Gold - https://www.commodity-tv.com/ondemand/companies/profil/chesapeake-gold-corp/ - has an immensely large gold and silver deposit that appears very promising.
In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.
Disclaimer: The information provided does not represent any form of recommendation or advice. Express reference is made to the risks in securities trading. No liability can be accepted for any damage arising from the use of this blog. I would like to point out that shares and especially warrant investments are always associated with risk. The total loss of the invested capital cannot be excluded. All information and sources are carefully researched. However, no guarantee is given for the correctness of all contents. Despite the greatest care, I expressly reserve the right to make errors, especially with regard to figures and prices. The information contained herein is taken from sources believed to be reliable, but in no way claims to be accurate or complete. Due to court decisions, the contents of linked external sites are also co-responsible (e.g. Landgericht Hamburg, in the decision of 12.05.1998 - 312 O 85/98), as long as there is no explicit dissociation from them. Despite careful control of the content, I do not assume liability for the content of linked external pages. The respective operators are exclusively responsible for their content. The disclaimer of Swiss Resource Capital AG also applies: https://www.resource-capital.ch/en/disclaimer/
