Gold exports top US$395m in Q1
Zimbabwe’s gold exports reached US$395,9 million during the first quarter of this year, compared to the US$303 million recorded during the same period in 2024.
Gold exports consistently trended upward from January to March, with the country earning US$123,1 million in January, up from US$112 million in January last year.
The monthly shipments totalled US$117 million in February compared to US$109 million last year, and US$155,8 million in March from US$82 million in the same period last year, according to statistics from the Reserve Bank of Zimbabwe. Gold is the country’s largest foreign currency earner, and last year, the country earned US$1,5 billion from the bullion.
Fuelled by concerns over US President Trump’s criticism of Federal Reserve chair Jerome Powell, which dampened risk sentiment, gold prices soared to a record high of US$3 500.05 per ounce yesterday, driving investors towards the safe-haven asset.
Bullion has gained around 28 percent so far this year, a rise comparable to its 1980 rally during the Iranian revolution, when prices surged by about 118 percent between November 1979 and January 1980.
During the first quarter of this year, gold deliveries experienced a significant upswing, reaching a total of 8,496.4 kilogrammes, a substantial 40,6 percent increase compared to the 6 044.96kg recorded in the same period of 2024, according to statistics from the Fidelity Gold Refineries.
Small-scale producers maintained their dominance, accounting for a remarkable 5 770.85kg in the first quarter. The figure dwarfs the 2 725.55kg delivered by primary producers during the same period.
Primary producers are typically larger, established mining companies with significant capital investment and formalised operations. Their contribution, while still substantial, is considerably lower than that of small-scale miners.
Secondary producers, who often operate with less capital and more rudimentary methods, have become the major drivers of Zimbabwe’s gold output, with their contribution significantly outpacing that of the primary producers.
This could be due to an increase in small-scale miners, improved organisation within the sector, Government initiatives to formalise and support small-scale mining, and potentially, higher gold prices incentivising their activity.
Big investments also led to old mines reopening and existing mines producing more. Also, paying small-scale miners better and encouraging them to sell through official channels has increased production.
More mining activity by small miners, quick payments, and strong gold prices all contributed to higher output.
Unlike sovereign bonds, which can be swayed by political events, or currencies, which fluctuate with trade relationships, gold and other precious metals offer political neutrality.
Their universal acceptance and independence from any nation’s creditworthiness are key reasons why investors — individuals, institutions, and central banks alike — continue to favour gold, even at today’s elevated prices. Looking ahead, investment analysts believe the ongoing global economic tensions, the potential for stagflation (characterised by low growth, high inflation, and rising unemployment), and a weakening US dollar are likely to sustain support for gold price.-herald
