There is always uncertainty in the economy. Which is why, investors often seek safe haven assets to protect their wealth.

Historically, gold has served as a natural hedge against economic turbulence, and now, the Bank of Ghana (BoG) has a structured way for residents to tap into this market through the Ghana Gold Coin (GGC).

Understanding the nuances of this asset, from its purity to the specific steps required for acquisition and resale is important for making an informed decision as an investor.

What is the Ghana Gold Coin?The GGC is a financial asset manufactured from responsibly mined gold in Ghana, refined to a high purity of 99.99%. Unlike standard currency, the GGC is not legal tender. Rather, it is a specialised investment tool issued and guaranteed by the Bank of Ghana.

The coin is available in three distinct sizes to accommodate different budget levels:

1 oz Coin: 34mm in dimension

1/2 oz Coin: 27mm in dimension

1/4 oz Coin: 22mm in dimension

Each coin features the Ghana Coat of Arms on the front and the Independence Arch on the back. When you purchase a GGC, it comes in a wooden storage box with a transparent holder and a certificate of ownership.

How is the price determined?The price of the GGC is not fixed but fluctuates based on global market standards. It is determined by the previous day’s London Bullion Marketing Association (LBMA) Auction afternoon (PM) price.

To convert this to local currency, the United States Dollar rate against the Ghana Cedi is applied using the previous day’s Bloomberg REGN Mid-Rate.

The Bank of Ghana publishes the official price on its website daily by 9:00 am.

How to buy the Ghana Gold CoinFor residents in Ghana, the process is handled entirely through the banking system to ensure security and transparency.

Where to go: You cannot buy coins directly from the Bank of Ghana. Instead, commercial banks serve as the primary channel for buying and selling.

Payment Method: Transactions must be conducted in Ghana Cedis. Notably, cash is not accepted; payments must be made through your bank account or mobile money.

The Process: You must place an order at your commercial bank specifying the desired weight and quantity. You must have sufficient funds in your account to cover the purchase. The bank then places a buy order with the BOG on your behalf.

Verification: To prevent money laundering, all buyers must undergo identity verification (KYC) and prove the source of their funds.

Can you buy the coin from abroad?Currently, the GGC is designed for investors resident in Ghana. While the BOG is working on distribution platforms to allow trading outside of Ghana, these channels are not yet available.

How to resell your CoinOne of the most important aspects of any investment is liquidity. That’s how easily you can turn the asset back into cash.

Selling back to the bank: To sell, you must check the current price on the BOG website and place a sale order with your bank.

Authentication: Before the sale is finalised, the coin must be authenticated at the bank or a BOG-authorised institution.

Guaranteed Buyback: The Bank of Ghana guarantees the GGC. If a commercial bank is unable to buy it back, the BOG stands ready to buy it back, though some discounts may apply.

Fees: Be aware that commercial banks may charge a transaction fee for the resale of the coin.

Verifying AuthenticityTo protect investors from counterfeits, the GGC includes several security features. Investors can verify their coins through:

Physical Checks: Checking the specific dimensions, weight, and design details (the Coat of Arms and Independence Arch).

Magnet Test: Since pure gold is not magnetic, any attraction to a magnet indicates a counterfeit.

Veriscan Technology: The GGC uses Veriscan technology. Investors can download the “VERISCAN – Bullion Security” app (currently available on iPhone) to scan and authenticate the coin using the PAMP brand and Bank of Ghana design settings.

Storage and SecurityOnce purchased, you may choose to keep the physical coin yourself or deposit it with your commercial bank for safekeeping for a marginal fee.

Because the BoG ensures the gold is sourced from traceable, responsibly mined locations, the GGC represents an ethically sound addition to a diversified financial portfolio.

DISCLAIMER: Independentghana.com will not be liable for any inaccuracies contained in this article. The views expressed in the article are solely those of the author's, and do not reflect those of The Independent Ghana