Sammy Gyamfi, the Acting Managing Director of the Precious Minerals Marketing Company (PMMC), has defended the government’s decision to intervene in the gold sector, asserting that such action is crucial to ensure fair pricing and tackle the ongoing challenges of smuggling.
One of the major points of contention has been the use of public funds for purchasing gold. Some argue that it is not the government’s responsibility to engage in gold trading. However, speaking on JoyNews’ Newsfile on April 5, 2025, Gyamfi strongly disagreed, stating, “There cannot be any nobler agenda for the government to spend public funds on than gold trading.”
He explained that while private investors are willing to invest capital into gold purchases, they typically demand significant discounts—5%, 6%, or even 10%. Gyamfi warned that purchasing gold under such conditions would inevitably lead to increased smuggling, as miners would be incentivized to sell gold at lower prices to foreign traders. “If we buy gold at those discounts, it will fuel smuggling,” he noted.
To address this, Gyamfi emphasized the importance of government intervention through seed capital to ensure that gold is bought at fair prices. “Government seed capital will ensure fair pricing to small-scale miners and reduce the temptation to smuggle,” he explained.
This stance is part of a broader government strategy to reform the gold sector. By taking control of gold trading, the government seeks to reduce the influence of foreign traders who have historically dominated the market and failed to comply with the law by not repatriating foreign exchange earnings. The Ghana Gold Board, a key entity in this reform, will oversee the purchase, assaying, and export of gold, ensuring that revenues are channeled back into the country.
He further highlighted that these reforms will support Ghanaian miners and create a more transparent and equitable gold trading market.
