Browsing: Gold prices in Tanzania

The mining industry in Tanzania holds a unique position as one of the most financially rewarding sectors, consistently generating foreign currency. Beyond its economic significance, this sector also wields considerable political influence within the nation. Therefore, a recent multi-million-dollar agreement forged with Australia and the US for the extraction and processing of critical minerals positions Tanzania advantageously as it prepares to participate in the forthcoming Critical Minerals Summit 2023.…

• Tanzania will start purchasing gold through the Bank of Tanzania (BoT) with a view to establishing a National Gold Reserve.
• This initiative will significantly drive gold mining activities across the nation.
• Tanzania exports gold mainly to South Africa, India, and Switzerland

A plan to re-stablish Tanzania’s gold reserves is promising to hand a lifeline to thousands of small-scale gold miners in Tanzania’s mining industry.

Tanzania has several significant gold mining projects and operations, offering job opportunities to thousands of people. At the moment, Tanzania is one of the top producers of gold across Africa. Consider the Mwakitolwo gold mine in Shinyanga, which employs over 10,000 people despite using an artisanal approach.

Mines to build Tanzania gold reserves

Numerous large-scale gold mines are present in Tanzania and are run by both local and international mining firms. Some of the leading gold mines are Geita Gold, Bulyanhulu, North Mara and Golden Pride.…

The gold price does seem to mirror the physical attributes of the metal, it does not lose its lustre nor does it tarnish.

It retains its shine almost perpetually. Its physical attributes mirror its attributes as an investment as well.

The case for investing in gold

The problem with most if not all investors who think about adding gold to their portfolio is that it does not directly conform to the most common valuation methodologies used for equities or bonds.

Gold patently does not generate a coupon or dividend and therefore, typical models that a based on discounted cash flows, expected earnings or book to value ratios, struggle to provide an appropriate assessment of gold’s underlying value.

This is according to the World Gold Council which has developed a framework to help investors understand the valuation of gold. The Gold Valuation Framework (GVF) posits that the price performance of …