CHEAPEST COUNTRY TO BUY GOLD FROM AFRICA TODAY – Why?
It’s no secret that Uganda is one of the cheapest countries in Africa to buy gold from. This is because Uganda has vast deposits of gold (31 Million more tones announced this year 2022), and also a lot of gold flows into the country from neighboring countries like DR Congo and South Sudan. The locals also do a lot of mining by themselves and sell the gold they get at very affordable prices to the dealers in Kampala. That’s why gold is sold cheaply in the Kampala market compared to other markets on the continent. However, there is a little bit of a problem in Uganda’s economy since the Ugandan government is not very strict about monitoring the gold trade in the country. This means that the gold is often sold at a very low price to anyone without any kind of checks. On the other hand, the Ugandan government has announced several measures recently to control the illegal mining of gold in the country and make sure that the precious minerals are being mined safely and legally instead of being sold illegally. Meanwhile, this announcement has been made, it could take years if not decades for these measures to take full effect, so the sellers will continue to sell gold at a lower price despite the new regulations from the authorities.
LAX REGULATIONS MAKE GOLD TRADE IN UGANDA VERY AFFORDABLE
Despite being a mineral-rich country, the regulations governing the sale of gold in Uganda are lax at best, which makes it possible for just about anyone to sell gold at whatever price they want to, regardless of the quasi-existing government regulations on gold trade. This means that anyone selling gold in the Kampala market can do so at a highly discounted price compared to the market price in any other African country. Even the licensed dealers aren’t too strict about the prices they are charging for the gold that they buy and sell. Gold is also one of the commodities that are often smuggled into the country by illegal immigrants, which is another reason behind the low prices at which it is sold in Uganda compared to the rest of the continent. In fact, many unlicensed dealers don’t even pay tax to the government when they buy gold from local miners and then sell it to customers in the Kampala market. As a result, many people are able to get their hands on this precious commodity at a very low price without even knowing whether they are getting a fair price or not.
THE FLOW OF GOLD INTO UGANDA FROM OTHER COUNTRIES
The flow of gold into Uganda from other countries is another reason why the gold in the Kampala market is sold at such a low price. This is because most of the gold that is imported into the country comes from neighboring countries such as the Democratic Republic of Congo (DRC) and South Sudan. However, due to the fact that these countries have poor infrastructure and a lack of financial and administrative institutions, the majority of the gold that is mined in those countries is not transported to commercial centres such as Kampala and instead finds its way to small shops or artisanal mines where it is traded by local traders. This in turn allows the buyers in the Kampala market to purchase gold at a significantly lower price than they would if they bought it directly from the countries where it is mined. This lack of regulations and a proper distribution network means that the Ugandan market is flooded with cheap gold from countries that don’t have formal economies and government oversight over the mining sector. As a result, most Ugandans are able to get their hands on large quantities of gold without having to pay for it in hard currency, which enables them to save a lot of money in the long run.
SHOULD YOU BUY THE CHEAP UGANDAN GOLD OR NOT?
Many people still think that buying gold is a good way of making money in the current market, while others believe that it is just another form of gambling. However, the truth is buying gold has always proven to be a good long-term investment for most people since it has never lost its value and can be easily converted into cash when needed. It is even better if you can buy the gold at a relatively low price by taking advantage of the low prices that prevail in the market due to the large numbers of people that have decided to enter the mining business without any proper guidance or training. Therefore, if you are thinking of buying some gold as an investment, you should seriously consider buying it from a seller in the Kampala market instead of buying it from the other markets with significantly much higher prices.