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

Author

Listed:
  • Simbarashe Brandon MATANHIKE

    (Midlands State University, Gweru, Zimbabwe)

  • Newman WADESANGO

    (University of Limpopo, Polokwane, South Africa)

  • Lovemore SITSHA

    (Midlands State University, Gweru, Zimbabwe)

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.

Suggested Citation

  • Simbarashe Brandon MATANHIKE & Newman WADESANGO & Lovemore SITSHA, 2025. "The Impact of Gold Coin Investments on Portfolio Diversification and Risk Management in the Zimbabwean Financial Markets," CECCAR Business Review, Body of Expert and Licensed Accountants of Romania (CECCAR), vol. 6(8), pages 69-82, August.
    • Handle: RePEc:ahd:journl:v:6:y:2025:i:8:p:69-82
    DOI: 10.37945/cbr.2025.08.06
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    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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