Edward Nana Yaw Koranteng is the former CEO of MIIF
The former CEO of the Minerals Income Investment Fund (MIIF), Edward Nana Yaw Koranteng, has projected that the current surge in global gold prices may slow down due to efforts by central banks to ease purchasing power.
According to him, although gold prices continue to rise, central banks are likely to slow their rate of gold reserve accumulation before prices become a concern.
Speaking in an interview with B&FT, Koranteng noted that since the first half of 2024, several central banks have already begun reducing their gold purchases, citing Turkey as one of the top five buyers over the past three years.
Gold prices move above $4,000 an ounce
He explained that Ghana’s domestic gold purchase program, which includes purchases from both large-scale and small-scale miners at negotiated prices, positions the country to strengthen its foreign reserves and enhance economic resilience.
“Turkey has been among the top five buyers of gold over the past three years. I believe we may see very sharp falls in gold prices if major geopolitical drivers, such as the US-China trade tensions, are resolved. For African gold-producing countries like Ghana, these are some of the best times in history. Ghana’s domestic gold purchase program, which covers purchases from both large-scale and small-scale miners at negotiated prices, provides an advantage in bolstering reserves,” he explained.
Koranteng also highlighted the potential benefits of listing Ghana’s proposed gold-backed Exchange Traded Fund (ETF), suggesting it could deepen the capital market and offer new investment opportunities for institutional investors, including pension funds.
“Ghana can realise the listing of the proposed gold-backed ETF to deepen the capital markets and provide alternative investment options, especially for pension funds. The South African GLD, a gold-backed ETF listed on both the Johannesburg Stock Exchange and the Ghana Stock Exchange, has delivered returns of over 300% on the GSE in the past four years,” he added.
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