The Ghana Gold Board (GoldBod) has increased the price it pays per pound of gold in a bid to curb smuggling and black market trading.

Effective yesterday, the GoldBod introduced a special temporary bonus of GH¢832 per pound of gold for all licensed miners in the country.

The Head of Public Relations of GoldBod, Prince Minka, said the development was a measure “to motivate licensed miners and fight gold smuggling”.

“As a result of this initiative, a pound of gold, which should have sold in the local market for GH¢8,868, is today selling at a price of GH¢9,700,” Mr Minka said in a statement.

The GoldBod said it had consequently instructed licensed traders across the country to promptly pay the bonus package for all gold purchases with immediate effect.

“The GoldBod has adequately resourced and directed its licensed traders across the country to ensure the prompt payment of this special bonus to all licensed miners who sell their gold to the GoldBod,” the statement said.

“The special bonus will ensure that licensed miners, who have contributed immensely to the country’s increased gold output and foreign exchange earnings, do not indirectly suffer as a result of the significant appreciation of the Ghana Cedi that they have helped the country achieve,” it said. 

Legitimate complaints

The statement indicated that “this novelty is in response to legitimate complaints from licensed miners about the significant reduction in the local price of gold in the last few months due to the continuous appreciation of the Ghana cedi”.

He later explained to the Daily Graphic that complaints about low price payment by the GoldBod were because of the improved strength of the cedi against its major trading currencies, particularly the dollar.

The cedi, trading at just GH¢11 to a dollar yesterday, has recovered from a free fall that slumped to more than GH¢16 to a dollar last year.

The impact, Mr Minka said, had affected local pricing of gold, given that the cedi had gained considerably against the dollar recently.