An Economist says the increase in today’s Gold price on the international market is as a result of the political tension between Hong Kong and China.
Munyumba Mutwale told Money FM News in an interview that as people are worrying about the tension between the two countries, they are stock piling on Gold, hence the increase in price of the mineral.
Mr. Mutwale however said the increase does not mean much for Zambia because the country is not an international gold trading nation.
He said Zambia’s market is not structured on the international market yet, as it has only one buyer.
“Zambia shouldn’t really start thinking about engaging in gold trading on the global market yet, our job actually should be to get hold of the gold so that we can back our currency.”
“Engaging in international gold trading is quite dangerous for us and so the best we can do is to try to hold gold within our country and allow people to save in it. The allowance of people to save in Gold will allow the money to find itself through the central banking system and operate that way,” Mr. Mutwale said.
The price of Gold on the international market has increased by 0.85 percent to 1, 850 US Dollars per ounce as Zambia unlocks potential of the mineral to boost national reserves.
Tensions between Hong Kong and China lead to increase in gold prices
