The Impact of Gold Coin Investments on Portfolio Diversification and Risk Management in the Zimbabwean Financial Markets

Simbarashe Brandon Matanhike, Newman Wadesango and Lovemore Sitsha
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Simbarashe Brandon Matanhike: Midlands State University, Gweru, Zimbabwe
Newman Wadesango: University of Limpopo, Polokwane, South Africa
Lovemore Sitsha: Midlands State University, Gweru, Zimbabwe

CECCAR Business Review, 2025, vol. 6, issue 8, 69-82

Abstract: This study examines the role of gold coins in diversifying investment portfolios and managing risk within the Zimbabwean financial market, focusing specifically on commercial banks including FBC, CABZ, and CBZ. The research employs a quantitative methodology, utilizing a structured questionnaire distributed to a sample of bank customers and investment professionals to gather relevant data. Data collection methods involved both online and face-to-face interactions, ensuring a comprehensive understanding of participants’ perspectives on gold coins as an investment vehicle. Results indicate that a significant proportion of respondents view gold coins as a viable option for wealth preservation and risk management, with 70% acknowledging their role in enhancing portfolio diversification. However, some respondents expressed concerns regarding price volatility and market speculation affecting gold coin values. The study concludes that while gold coins can effectively serve as an alternative asset class in Zimbabwe’s economic landscape, investors should remain cognizant of market fluctuations. It is recommended that commercial banks enhance customer education on gold coin investments, providing more in-depth information on market dynamics and risk factors, to better equip clients in making informed investment decisions.

Keywords: gold coins; investment diversification; risk management; Zimbabwe; commercial banks (search for similar items in EconPapers)
JEL-codes: G11 G23 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ahd:journl:v:6:y:2025:i:8:p:69-82

DOI: 10.37945/cbr.2025.08.06

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