Private gold buyers buying gold at higher prices

The Zimbabwean government is facing calls to enforce its gold…

The Zimbabwean government is facing calls to enforce its gold pricing policy after allegations emerged that private players are purchasing the yellow metal at higher prices than the State-set rate.

The allegations were raised by Shamva South Member of Parliament (MP) Joseph Mapiki, during a Question and Answer session on Wednesday.

Mapiki asked the Ministry of Mines and Mining Development to explain why private buyers are willing to pay more for gold than the government.

“The Minister stated clearly that he is issuing licences to private players. I want the Hon. Minister to explain why they buy at a higher price than Fidelity Printers. I want to understand where they sell their gold,” said Mapiki.

The Deputy Minister of Mines and Mining Development, Polite Kambamura, responded by saying that the government sets gold prices based on international market prices daily and that any buyer purchasing at a higher price would be required to explain.

“If there is any buyer purchasing at a higher price, please show us that buyer because as Government, we have set prices depending on the international market prices on a daily basis just like when bread is priced at a dollar.

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“If we find you buying bread at $10.00, we would need an explanation as to why you are buying at such a price when Bakers Inn is selling at $1,” said Kambamura.

The allegations of private buyers purchasing gold at higher prices than the government-set rate raise concerns about the transparency and fairness of the country’s gold market.

Zimbabwe on the 1st of November 2023 re-introduced the once abolished 75% us$ payments and 25% local currency payment system for Small-scale miners. This did not sit well the miners on Mining Zimbabwe’s facebook page after we asked how the new 75/25% payment system is. 99% of the miners who responded said it was a wrong move lamenting that all consumables, equipment, accessories are sold in US dollars.

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