Is gold a safe hedge against inflation in Nigeria?

Gold has long been considered a safe haven for investors looking to protect their wealth during times of economic uncertainty. With inflation on the rise in Nigeria, many are turning to the precious metal as a hedge against the eroding value of the local currency. Nere Teriba, Vice President of Kian Smith Refinery, recently joined CNBC Africa to discuss the current dynamics shaping the gold market in Nigeria and what to expect from African producers. One of the key themes discussed in the interview was the forecast for gold purchases in the coming year. While the World Gold Council predicts that purchases of the commodity are unlikely to meet the record levels seen in 2023, when central banks around the world were actively buying gold, the demand for gold in Nigeria remains strong. Teriba highlighted that gold continues to be a preferred asset for investors seeking to safeguard their wealth from the impact of inflation. During the interview, Teriba emphasized the importance of gold as a universal store of value, particularly in emerging markets like Nigeria where inflation rates are high. She explained that the intrinsic value of gold and its historical track record as a reliable store of wealth make it an attractive option for investors looking to diversify their portfolios and protect their purchasing power. Furthermore, Teriba delved into the role of African producers in the global gold market. She noted that African countries, including Nigeria, have vast untapped reserves of gold, presenting significant opportunities for growth in the region's mining sector. By leveraging these resources and improving mining practices, African producers can not only meet local demand but also contribute to the global supply of gold. In conclusion, the interview with Nere Teriba shed light on the enduring appeal of gold as a safe hedge against inflation in Nigeria. As economic uncertainties persist and inflationary pressures mount, the precious metal remains a reliable asset for investors looking to preserve their wealth. African producers also have a critical role to play in the global gold market, with the potential to drive growth and contribute to the supply of this precious commodity.