Dropping gold and silver, people are investing in cows
People are not left with many options to invest, the condition of banks has also deteriorated here
New Delhi,Zimbabwe is currently going through an economic crisis. Inflation is at its peak in this South African country. According to statistics, the inflation rate reached 192 percent here in June. which is the highest. One of the reasons is the Ukraine-Russia war.
Prices of household necessities are skyrocketing because of the war. According to reports, investors in banks have lost their savings in two decades. So people are not left with many options to invest. The condition of banks has also deteriorated here. In such a situation, people are looking for safe investment opportunities. It should be noted here that this condition of Zimbabwe did not happen overnight.
There has been a big change in inflation here over the last two decades. People’s trust in the country’s currency has now been lost. In such a situation, people in the country want to invest in a place where their money is safe. Deutsche Welle quoted Silverbank Asset Managers CEO Ted Adwarts as saying that people are investing in cattle amid poor conditions in Zimbabwe.
The point is that investing in cows is a safe option. His company is a unit trust based on cattle. He says that some asset management companies have come up with the traditional way of making money by investing in cattle. For example, Edwards’ company has created a unit trust investment fund in the name of Monbe Mari.
In which people can also use local currency to invest. He says that in this trend of inflation, investing in cows is proving to be a profitable deal for people. Investment in cattle has also borne the brunt of inflation in the last few years. It should be noted here that a large population of Zimbabwe depends on pastoralism. In this way, this is their deposit.
Farmers here believe that investing in cattle has never proved a losing proposition for them. Milk, dung etc. are available from animals. There is also an option to sell them as the price increases. The cost of cattle is maintained even in the midst of inflation. Along with this, the price of cattle increases even after breeding. That means an average of one calf is born every year.
Which is same as interest. Farmers believe that investment in cattle is a better option than gold and silver. As the cost of cattle is not much affected, milk-dung also earns and as interest it also gives calves or heifers. According to the Food and Agriculture Organization, livestock accounts for 35 to 38 percent of Zimbabwe’s GDP.ss1