Prof. Willian Kwasi Peprah, Associate Professor of Finance at Andrews University in the US, says Ghana’s Gold Board is a good policy idea, but its biggest risk is not gold supply or prices; it is how the scheme will be financed.
Speaking on Joy News’ PM Express on Wednesday, he said the Gold Board law appears solid, but the real test will be in how it is operationalised and funded. “The gold board idea is very good,” he said. “The law is good; the operationalisation is where we must watch it carefully.”
He warned that, without a robust financing structure, the Gold Board could become a future burden, similar to other commodity institutions. “The financing model for the gold board also needs to be looked at a little bit,” he said. “So that gold board does not tend to the next Coco board, as we are discussing.”
Prof. Peprah explained that gold trading is driven by global forces and that Ghana must prepare for price swings, even if prices are currently rising. “To understand gold trading, gold is treated on three main angles. One, when there is fear inflation, and then a currency hedge,” he said.
He noted that global uncertainty is driving investors toward gold, thereby contributing to the current price strength. “We currently fear so many things happening in the world, which makes investors uncertain. So that is why we are seeing the gold price really, really moving up,” he said.
He also pointed to currency trends, arguing that investors are shifting into gold as the US dollar weakens. “We’ve noticed that the US dollar is devaluing, and that’s why we see investors moving into gold,” he said. However, Prof. Peprah cautioned that Ghana must not treat the current high prices as permanent.
“If the price we all know it will still start to come down,” he said. He proposed that Ghana establish a gold commodity stabilisation account, similar to those already in place for cocoa and petroleum. “If the gold board will work, we need another stabilisation account for the gold,” he said.
He said Ghana should take advantage of current high prices to build buffers that can protect the economy when prices fall. “So now that we are having this windfall, we should be able to establish another stabilisation fund purposely for gold, to put those monies into guard against,” he explained.
He advised the Gold Board, the Bank of Ghana, and the government to set aside the proceeds from gold sales into a dedicated fund. “My advice to the probably good ball central bank and government is that whatever amount of gold sales that is coming that we are putting in our balance of payment account, and we create that fund just for gold,” he said.
Prof Peprah stressed that the stabilisation fund is distinct from the Gold Board’s revolving fund and must not be confused with it. “Gold board, they have a revolving fund. ” A revolving fund account is not the same as a stabilisation fund account,” he said.
He added that while Ghana’s refinery plans are important for value addition, the stabilisation fund remains critical. “It’s good. We are doing a refinery to add value, but that commodity fund for gold is needed,” he said.
Regarding financing, he noted that the Gold Board is expected to rely partly on government support, even though previous commitments were not fully honoured. “It has raised, getting money from the government of Ghana, which we know the amount they promised was not fully released in 2025,” he said.
He also noted that the Bank of Ghana is exiting direct financing of the gold trade, thereby increasing pressure on the Gold Board to identify viable alternatives. “Bank of Ghana is going to exit from financing trade,” he said.
He cited a provision in the law that permits advance payments by gold buyers. “I think, in the law, it allows them to take money in advance from whoever needs gold, and then be able to give them the gold,” he said. Prof Peprah warned that if Ghana becomes overly dependent on gold without safeguards, the trade balance could come under strain.
“If we focus on gold… our trade balance will move into a very struggling position,” he cautioned.
