Joseph Isangura
Gold prices have recently surged to unprecedented levels, reaching heights not seen since record-keeping began in 1970.
As of this week, the price of an ounce of gold reached $2,523 (approximately Sh6.85 million), driven by a combination of global economic factors, including the strengthening of the US dollar and concerns over upcoming US elections.
Economists attribute this rise to the global decline in demand for the US dollar, coupled with inflationary pressures that have made gold an attractive option for investors seeking stability.
According to Mr. Oscar Mkude, a Dar es Salaam-based economist, the price surge reflects a broader shift away from the US dollar. “To preserve their wealth, people are investing in gold. If they later decide to convert gold back into cash, they will either get back the amount they spent or even more,” Mkude explained.
Read More; Singida Regional Commissioner Issues Revenue Management Directives
This upward trend in gold prices is also beneficial for gold-producing countries like Tanzania. The country stands to gain from increased revenues and higher tax collections from gold sales.
Professor Abel Kinyondo of the University of Dar es Salaam noted that history shows a pattern of people turning to gold during times of economic instability, further driving demand.
The impact on Tanzania’s mining sector has been significant. In 2023, gold sales in the country rose to Sh7.27 trillion, up from Sh6.49 trillion in 2022, according to the National Bureau of Statistics. The Bank of Tanzania’s July Monthly Economic Review reported that gold sales reached $3.12 billion during the year ending June 2024, an increase from $2.909 billion in the previous year.
