Zimbabwe has introduced a new currency, ZiG, based on gold production. ZiG stands for Zimbabwe Gold, and the currency is backed by 2.5 tons of gold and 100 million dollars. Zimbabwe has asked gold mine workers across the country to increase their production to support the newly introduced ZiG currency last month, according to Winston Chitando, Minister of Mines and Mining Development. This is a new attempt to establish a functioning currency. Now, the South African state aims to achieve a gold production of 40 tons in the current year. In 2023, Zimbabwe produced 30.1 tons of gold. Additionally, royalty and streaming companies in Zimbabwe have been required to partially pay their revenues to the state since the end of 2022, in the form of cash and commodities, as Zimbabwe aims to increase its reserves.

Gold is also highly favored by many private investors. After recently reaching a new record price, many see the chance, also from a technical chart perspective, for the journey of the gold price to continue upwards. Regarding the important interest rate cut plans of the USA, the latest US inflation figures raise hopes for an imminent interest rate cut. After all, US consumer prices did not rise as strongly in April as in previous months. And as inflation falls, a rate cut becomes closer. US bond yields have also reacted to the inflation figures, declining. The US dollar has also weakened.

The development of the silver price is also pleasing. With nearly $32 per ounce, silver must now be paid as much as it hasn’t been since early 2021.

Companies like Fortuna Silver Mines – https://www.commodity-tv.com/… -, which successfully produce gold and silver, are favored. The company’s projects are located in Mexico, Peru, Burkina Faso, Argentina, and the Ivory Coast.

OceanaGold – https://www.commodity-tv.com/… – also produces successfully and owns four gold mines, located in the USA, the Philippines, and New Zealand. Additionally, OceanaGold has strategic investments and interests in two exploration companies.

For current company information and press releases from Fortuna Silver Mines (- https://www.resource-capital.ch/… -) and OceanaGold (- https://www.resource-capital.ch/… -).

According to §34 WpHG, I would like to point out that partners, authors, and employees may hold shares in the companies mentioned and thus a possible conflict of interest may exist. No guarantee for the translation into German. Only the English version of this news applies.

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