Dhaabu Ya Tanzania, Mali Ya Wote

Muke Ya Muzungu · 2011-08-30T03:08:32+00:00

Source : Tathmini - John Mashaka says wake up Tanzania, it is a gold rush!! Major economies, large investors, and wealthy individuals are diverting their attention from once lucrative and profitable companies, to gold yellow metal- investments. Tanzania is Africas third largest gold producer, after South Africa and Ghana. According to Business Week Magazine, in the year 2010, Tanzania total gold output was 44.6 tons or 1573.219 ounces, and I am not sure how the country benefited out of this natural resource. In a perfect world, the above figures would have fetched $2,831,793,665.31 enough money to prop-up our collapsing economy, and the drainage bound currency (Tsh). In recent months, Investors have become extremely jittery, while the financial markets continue with their volatility caused by the fear of the American economic uncertainty, and the European debt crisis. Both of which could potentially devalue some of the major global currencies, such as the American dollar, Euro and the British Pound. Gold is now the safe haven for the millions of worried investors. Our previous economic discussions touched on gold, as being one of the potentially safer alternatives -insurance policy- to saving our countrys ailing economy. Tanzania gold output alone was enough to end the chronic energy (electricity) curse. Backed by gold bars, our currency would not have been where it is today. In todays electronic trading, gold traded at $1,817 an ounce, and the demand which is an opportunity for Tanzania is steadily growing. Most analysts see gold at around $2,000 an ounce towards the end of 2011 or before summer of 2012. Unfortunately, Tanzanias gold has not done the country any good but continued curse to the natives, whose land is producing gold, to say the least. Many investors who previously made fortune in the prime-mortgage, have shifted their focus, and now trying to play it safe, by converting both of their liquid and fixed assets into golden bars. With the obvious subsiding of the global markets and economies, and inflation set to soar, gold is becoming the option of last resort; purchase of gold future contracts, swaps and even physical bars of the yellow metal, is becoming a rush for many investors across the globe with enough disposable income, and not sure of Tanzanias strategic approach on this opportunity? In the past, gold investment disappointed many investors due to the fact that, people did not necessarily trust the dollar, but had faith in the US government which backed up the currency. And this has been the case for other major currencies. Today, the matter is totally different. From investment point of view, the current gold rush is fear, and uncertainty driven, and no currency can stop its demand. Tanzania is producing and shipping tons of gold; a rare metal richest nations, world wealthiest individuals, and corporations are dying to have. Despite the fact that, our land is producing a lot of gold, it is shameful to say, that the countrys Tanzania- economy and currency have been inadequately backed by this precious metal. The demand for gold is not profit driven, but a way to save some of the most liquid assets in longer terms. Investors are not running into gold and other precious metals to make a fortune, many are running into this precious metal with hopes of simply saving their most liquid assets (cash) from further damage. Gold is the best alternative to the fluctuating currencies, deteriorating treasuries, corporate, municipals bonds and other forms of investments. Those in gold purchasing frenzy believe that, debt or over borrowing by many nations trying to stabilize their economies, will lead to overspending and consequently explosion of inflation which could help gold to rise in prices. It is imperative to say therefore, that, gold is Tanzanias strategic weapon and asset that could starve off economic nightmare the country is faced with. The Parliament and the executive branch of the government must now review and perhaps nullify most of the existing gold related contracts benefiting foreigners more than the country itself. These are extremely difficult, economic times, which need extra ordinary measures and decisions. Considering Tanzanias wealth, both human and natural, one can only wonder why a country so rich; sitting on gold, to remain a charity case in the eyes of the world. It is my hope therefore, that our leaders reading and monitoring the global economic progress, will or have strategized on how our country can immensely benefit from this gold rush. We hope our government can use this precious metal to her advantage. The government of Tanzania must shift/increase its reserves with domestically produced gold, as opposed to the United States Dollar, Euro and the British pound. The country needs to wake up, it is a gold RUSH! Mungu Ibariki Tanzania John Mashaka, mashaka.john @yahoo.com

Thread starter Muke Ya Muzungu
Start date Aug 30, 2011

Muke Ya Muzungu

JamiiForums uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
By continuing to use this site, you are consenting to our use of cookies.

Accept Learn more…

Back

Top Bottom

Forums

New posts

Dhaabu Ya Tanzania, Mali Ya Wote

Muke Ya Muzungu

JF-Expert Member

Our Community

Regional Communities