How to invest in Gold in Ghana

Gold is one of the best-known items of value in the world. It goes across cultural boundaries, and throughout history, gold has played numerous roles from currency, to essential materials in electronics, to jewellery with artisanal value. To many investors today, gold maintains its allure as a one-of-a-kind asset, which offers an alternative to conventional stock and bond markets.

As an investor, you may have already heard about the potential benefits of investing in gold. In Ghana, investing in gold can be a great way to diversify your portfolio and reduce your risk. With gold prices rising steadily over the years, now is the perfect time to consider investing in gold.

To begin investing in gold, you first need to decide how much money you are willing to invest. Once you have determined your budget, you can begin exploring the different ways to invest in gold. There are several options available to investors in Ghana, including gold coins, gold bars, and gold stocks. Each of these methods of investing has its own advantages and risks, so it is important to evaluate them carefully before deciding which option is best for you.

Ways to invest in Gold in Ghana

1. Purchase Gold coin

Gold coins are a common way to invest in gold. They are available in various denominations, including 1/10, 1/20, and 1/50 ounces. Gold coins are easy to purchase and can be purchased from banks, coin dealers, or online. Gold coins are typically more expensive than gold bars, but they are also much easier to store and transport.

2. Purchase Gold bars

Gold bars are another common way to invest in gold. They are available in various sizes and weights, and they tend to be more cost effective than gold coins. Gold bars are usually purchased through banks, coin dealers, or online. They are also easier to store and transport, but they are more difficult to sell for a profit in the event of a price drop.

3. Purchase Gold stocks

Investors can also purchase gold stocks. These are securities that are backed by the value of gold. Gold stocks are offered by many companies in Ghana, including the Ghana Stock Exchange. Gold stocks can be a great way to invest in gold, but they also carry a higher level of risk. Investors should be aware of the potential risks associated with gold stocks before investing.

How to invest in Gold in Ghana

1. Research and understand the Gold market

Before investing in gold, you should research and understand the gold market. Gold is a commodity, and like all commodities, its price is determined by a number of factors. These include the demand for gold, the supply of gold, the cost of production, and the political and economic conditions in Ghana. You should also research the different types of gold available for investment, such as coins, bars, jewelry, and other forms.

2. Choose where to buy Gold

Once you have researched the gold market and understand the different types of gold available, you then need to decide where to buy it. In Ghana, gold can be bought either from a dealer or online. When buying gold online, be sure to use a secure payment method like PayPal or a credit card. If you choose to buy gold in person, it is best to visit a reputable dealer and ask questions to ensure you’re getting a good deal.

3. Consider how to store your Gold

Once you have bought your gold, it is important to consider how you will store it. Gold is a precious metal and needs to be protected from theft and damage. You can store your gold in a safe or in a secure location. If you buy gold coins or bars, you should also consider having them professionally certified for their authenticity.

4. Choose where to sell your Gold

You can sell your gold back to the dealer you bought it from, or you can sell it on the open market. If you choose to sell it on the open market, you should make sure to research current gold prices before you make a sale.

Top Gold stocks in Ghana

Ghana is known for its rich mineral endowment and hosts several world-class gold belts, making it the 7th largest gold producing country in the world and the largest gold producing country in Africa. Some of the world’s largest mining companies, including Kinross Gold, AngloGold Ashanti and Newmont, have active gold operations in Ghana. Below is a list of the top gold stocks in Ghana:

1. Newcore Gold (TSX.V: NCAU)

Newcore Gold is advancing its 100%-owned Enchi gold project in Ghana. A 66,000 metre discovery and resource expansion drill program remains ongoing at the project. The company controls a 216km2 land package that covers 40 kms of Ghana’s prolific Bibiani Shear Zone, a gold belt which hosts several multi-million-ounce gold deposits.

Newcore’s recently released and updated PEA outlines robust project economics, including average annual production of 104,000 ounces of gold in years 2-5 and an after-tax Net Present Value of $212 million along with a 42% IRR. To learn more about Newcore Gold click here.

2. Kinross Gold (TSX: K)

Kinross Gold operates the Chirano open-pit and underground gold mine located in southwestern Ghana. The mine produced 166,000 ounces of gold in 2020 and has an expected mine life that runs through 2025. The government of Ghana holds a 10% carried interest in the mine and Kinross owns the remaining 90%.

3. Galiano Gold (TSX: GAU)

Galiano Gold operates the Asanko gold mine through a joint-venture partnership with Gold Fields Ltd. The Asanko mine is located in central Ghana and consists of two main deposits- Nkran and Esaase- along with multiple satellite deposits. Commercial gold production was declared on April 1, 2016. Galiano and Gold Fields both hold a 45% interest in the mine while the government of Ghana holds the remaining 10%.

4. Golden Star Resources (TSX: GSC)

Golden Star Resources owns and operates the Wassa underground gold mine located in the Ashanti gold belt of southwestern Ghana. The mine produced 168,000 ounces of gold in 2020 and has remaining proven and probable mineral reserves totaling 1.09 million ounces. The Wassa mine achieved commercial production in early 2017 and has six more years of remaining reserve life.

5. Asante Gold (CSE: ASE)

Asante Gold is developing the Kubi gold project in Ghana where it hopes to develop an underground gold mine that produces over 45,000 ounces of gold annually. The project currently contains an N.I. 43-101 compliant Measured mineral resource of 0.66 million tonnes grading 5.30 g/t gold as well as an Indicated mineral resource of 0.66 million tonnes at a grade of 5.65 g/t gold.

Conclusion

Regardless of which method you choose to invest in gold, it is important to research the potential investment thoroughly. It is also essential to consider the long-term potential of the investment, rather than focusing on short-term profits. Investing in gold is an excellent way to diversify your portfolio and potentially increase your returns, but it is important to understand the risks involved. With careful research and due diligence, investing in gold in Ghana can be a rewarding and profitable experience.