The world is witnessing record gold prices, with the precious metal once again proving its resilience as the ultimate store of value in turbulent economic times.
From inflationary pressures to currency volatility, investors across the globe are rushing into gold, reaffirming its age-old reputation as a safe haven.
In Ghana, the debate over how best to harness this momentum has intensified.
Recently, Sammy Gyamfi the CEO of Goldbod called for Pension Funds to be investing in gold, citing the metal’s performance as a shield against depreciation and as a means of protecting the value of workers’ savings. While this call holds merit, it is equally fraught with risks if not carefully structured.
Pension funds thrive on long-term stability, and a direct plunge into physical gold could expose them to liquidity and price volatility challenges. Nevertheless, the call by GBOD’s CEO is one in the right direction. This brings the writer’s pen to similar calls made in the past such as a gold linked or gold backed ETFs.
The proposed Ghana Gold Backed ETF
This is where gold-backed Exchange Traded Funds (ETFs) present a smarter, balanced solution. ETFs, already well-established in advanced economies, offer investors exposure to gold without the logistical and security burdens of holding the metal directly.
They combine the safety of gold with the liquidity and accessibility of stock market instruments. Ghana has a golden opportunity to lead in this space as Africa’s leading gold producer.
It is worth highlighting that Edward Nana Yaw Koranteng, the former Chief Executive of the Minerals Income Investment Fund (MIIF), made mention of the need for a gold backed ETF in 2023 when he advised the need for Ghana to leverage its gold resources in various ways including the creation of a gold backed ETF.
Mr. Koranteng spearheaded the initiation of a gold-backed ETF in 2024 which was designed to be listed on the Ghana Stock Exchange in 2025 with the support of IC Securities, Standard Charterd Bank and AB & David.
This groundbreaking initiative would have allowed ordinary Ghanaians, Pension Funds, and institutional investors to own shares backed by actual gold as a value addition to the MIIF Small Scale Mining Incubation and Trade Programs—in other words allowing Ghanaians to partake in the gold boom thereby democratizing access to the wealth beneath our soil.
Such an ETF would not only have provided a safer vehicle for pension funds, but also deepen Ghana’s capital markets, strengthen investor confidence, and positioned the country as a leader in innovative resource-backed financial products on the continent. In short, it was a transformative idea—one that needs to be commended and completed.
Yet, as things stand, the opportunity is slipping away. While global markets thrive on gold-backed ETFs, Ghana risks being left behind due to delays in policy alignment, regulatory inertia, and lack of urgency in execution. At a time when gold is trading at record highs, the absence of a fully operational gold-backed ETF represents a missed chance to capitalize on our natural advantage and further deepen our capital markets.
The way forward is clear: Ghana must revisit and fast-track the MIIF gold-backed ETF project not just as a response to high gold prices, but as a long-term strategy to harness the country’s mineral wealth for broader financial inclusion and economic resilience. This aligns with Sammy Gyamfi’s call.
The only listed gold backed ETF on the Ghana Stock Exchange is the Absa SA GLD, a south african owned cross listed ETF which has returned circa 162% on the GSE over the past three years. With gold prices at a record $3,600 dollas per ounce, this opportunity may become a missed one. At the time Edward Nana Yaw Koranteng proposed the ETF in 2023, gold was around $1,980 dollar per ounce.
History will remember those who had the foresight to set the foundation and it is the writers prayer that the foresight of Koranteng is aligned with the call of Sammy Gyamfi for Ghana to take a much circular view of deriving value from its gold while preserving the environment.
Conclusion
The next step is for policymakers and regulators to pick up the mantle and deliver on this vision before it becomes yet another unfulfilled promise.
Ghana cannot afford to keep missing golden opportunities—literally.
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