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Zimbabwe: Hard Assets Better Investment Option
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 Published by the government of Zimbabwe |
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The Herald (Harare)
2 July 2008
Posted to the web 2 July 2008
Harare
WITH the Zimbabwe stock market continually reaching all time highs (in nominal terms) investors often worry about investing their cash into the stock market or to buy foreign currency.
There are some that are typically scared to invest on the Zimbabwe Stock Exchange and are convinced that turning cash into hard currency is pretty much guaranteed to track inflation.
Obviously each person has his or her own specific circumstances with regards to investment needs but someone with a long-term investment objective should be wary of the paralysing effect that sitting on hard currency will have, in the event that the present scene changes and there is an injection of capital from outside the country.
In a hyperinflation environment, coming up with the safest investment option is difficult because inflation chews up any form of investment linked to nominal value.
The ZSE for its part has risen by 283 331 percent from 1 911 538 281,84 points at the beginning of the year with the current US dollar value of close to $4 billion, only shedding points as investors took in profits.
This is still below the estimated average inflation of the period to date of 345 000 percent.
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Currently the best option would be to buy hard assets whose value will go up significantly in US dollar terms in the future like the real estate market.
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