An affiliate professor of Finance at Andrews University within the U.S. has counseled the Gold Board initiative however warned that the rustic should get ready for a conceivable downturn in cross-border gold costs.

Prof Willian Kwasi Peprah, talking on Joy News’ PM Express on Wednesday, stated, “So the gold board idea is very good.”

However, he wired that the coverage’s technological advance depends on how it’s operationalised and on whether or not Ghana builds buffers to control long term shocks.

He pointed to the rustic’s present commodity stabilisation accounts for cocoa and petroleum and argued that gold should now not be disregarded.

“If the gold board will work, we need another stabilisation account for the gold,” he stated.

Prof. Peprah defined that whilst gold costs had been emerging, historical past presentations that such value market signals don’t seem to be everlasting, and Ghana should earnings for a decline.

“We know from history, gold price… has always been going up… [but] we must watch it carefully and make sure that… the price… will still start to come down,” he stated.

He stated that gold buying and selling is pushed basically via 3 components: worry, inflation, and forex hedging.

“We currently have fear… so many things happening in the world, which makes investors uncertain. So that is why we are seeing the gold price really, really moving up,” he stated.

On inflation, he famous that “The IMF and World Bank projects are being a little bit moderate.” He added that forex market signals also are prompting buyers to allocate to gold.

“We’ve noticed that the US dollar is devaluing, and that’s why we see investors moving into gold,” he defined.

Prof Peprah stated Ghana should deal with the present top costs as a providence and save a part of the proceeds.

“So now that we are having this windfall, we should be able to establish another stabilisation fund purposely for gold, to put in that money to guard against… that will come in,” he stated.

He instructed the Gold Board, the Bank of Ghana and govt to create a devoted fund from gold gross sales.

“My advice to probably the gold board, the central bank and the government is that whatever amount of gold sales that is coming… we create that fund just for gold,” he stated.

He said that the aim is to be sure that Ghana can toughen the gold financial backing when costs fall.

“When the price starts to drop, we’ll be able to use it support the gold industry in Ghana,” he stated.

Prof Peprah welcomed efforts to refine gold in the community so as to add worth, however insisted a stabilisation fund stays vital.

“It’s good. We are doing a refinery to add value, but that commodity fund for gold is needed,” he stated.

He additionally raised issues in regards to the Gold Board’s financing construction, noting that it should be in moderation tested to keep away from long term issues.

“The financing model for the gold board also needs to be looked at a little bit,” he stated.

He famous that the Gold Board has depended on govt plan, however “the amount they promised was not fully released in 2025.”

Prof Peprah additionally said that the Bank of Ghana is predicted to go out financing for the gold enterprise.

He cited a prison precedent that allows the Gold Board to simply accept bills prematurely from patrons.

“It allows them to take money in advance from whoever needs gold, and then be able to give them the gold,” he stated.

Prof. Peprah warned that the financing type should be correctly structured in order that the Gold Board does now not change into “the next Coco board.”

He added that Ghana’s enterprise place may just weaken if the rustic turns into too depending on gold with no buffer.

“If we fail on gold… our trade balance will move into a very struggling position,” he cautioned.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made via Readers and Contributors in this platform don’t essentially constitute the perspectives or coverage of Multimedia Group Limited.