JOHANNESBURG - THE African Medallion Group’s (AMG’s) gold reserves are set to double to R1 billion (US$78,5 million) in early 2018 after impressive developments at the South Africa based start-up this year.
In 2017, the firm, launched by Zimbabwean entrepreneur and philanthropist, Frank Buyanga, saw its reserves increase to over R500 million.
The growth of AMG’s reserves comes as world gold prices inched higher this week, as the dollar held steady on the expectation of tax changes in the US in 30 years.
If the present pace of gold accretion to the AMG reserve kitty continues, the reserves may hit the R1 billion mark in the first quarter of next year, according to AMG projections.
The announcement by AMG comes as gold prices hit $1,200 an ounce this week over mounting tensions between North Korea and the US, and surging demand in the world’s biggest consumers, according to the head of precious metals at a Russian investment bank.
Gold is often referred to as the “safe haven” for investors, due to its retention of value, rarity, and immunity to interest rate policies which can frequently be influenced by political and economic movements.
“As one of the oldest forms of currency, its simplicity and transparency as a commodity have clear longevity. Gold is a sensible option as part of a diversified portfolio, that’s why we are confident that we will reach the tonne mark,” Buyanga explained.
Evgeny Ananiev of VTB Capital JSC, the investment-banking unit of Russia’s second-largest lender VTB Group, projected bullion could rise to $1,360 within three months before climbing higher, fueled by global political risks and buying from China and India.
Jeffrey Halley, a senior market analyst with Oanda, believes gold has resistance and will always be a safe bet on investments over other options, including, digital currency Bitcoin, which is popularly known as digital gold, due to its high returns.
“Gold has resistance at $1,265 followed by the 200-day moving average at $1, 269,” Halley said, adding that immediate support for the metal would
come in at $1,261 an ounce.
Buyanga’s dalliance on the African gold market is gaining traction.
Earlier this year, he partnered with House of Mandela, to launch the gold-backed $10 Pan African Mandela Medallion.
AMG also launched special coins, which were later morphed into a cryptocurrency that is also tradable in Zimbabwe and six other countries, including America and the United Kingdom.
- CAJ News