Zimbabwe to introduce gold coins as local currency tumbles

7.5.22 - The Fed Is Causing Another Recession

Gold last traded at $1,765 an ounce. Silver at $19.13 an ounce.

NEWS SUMMARY: Precious metal prices fell Tuesday as the dollar topped 20-year highs. U.S. stocks extended heavy losses as concerns over a possible recession in the U.S. weighed on investor sentiment.

The Guardian--"Zimbabwe's central bank will start selling gold coins this month as a store of value to tame runaway inflation, which has considerably weakened the local currency.

The central bank governor, John Mangudya, said in a statement on Monday that the coins would be available for sale from 25 July in local currency, US dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.

The Mosi-oa-tunya coin, named after Victoria Falls, can be converted into cash and be traded locally and internationally, the central bank said.

The gold coin will contain one troy ounce of gold and will be sold by Fidelity Gold Refinery, Aurex and local banks, it added.

Gold coins are used by investors internationally to hedge against inflation and wars.

Last week, Zimbabwe more than doubled its policy rate to 200% from 80% and outlined plans to make the US dollar legal tender for the next five years to boost confidence."