An Associate Professor of Finance at Andrews University in the U.S. has endorsed Ghana’s Gold Board concept but warned that poor implementation and weak financing could turn it into “the next COCOBOD.”

Speaking on Joy News’ PM Express on Wednesday, Prof. Willian Kwasi Peprah said the idea behind the Gold Board is “very good,” but stressed that the real risk lies in its operationalisation.

“To me, the law is good. The operationalisation is where we must watch it carefully,” he said, arguing that Ghana must not repeat past institutional mistakes.

Prof Peprah said a key gap in the Gold Board framework is the absence of a dedicated commodity stabilisation account for gold.

He noted that Ghana already has stabilisation accounts for cocoa and petroleum, and gold must not be treated differently, especially given how global prices can swing.

“If the Gold Board will work, we need another stabilisation account for the gold,” he said.

He explained that gold prices are currently enjoying a windfall, driven by global uncertainty, inflation fears and currency hedging. According to him, gold trading is shaped by three main factors: fear, inflation, and currency.

“We currently have 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 movements as a major driver. “We’ve noticed that the US dollar is devaluing, and that’s why we see investors moving into gold,” he added.

However, he warned that Ghana must not assume prices will remain high indefinitely. He said the country must use the current gains to prepare for the inevitable downturn.

“Now that we are having this windfall, we should be able to establish another stabilisation fund purposely for gold,” he said.

Prof Peprah said the proposed fund should be built from gold sales and used to protect the industry and the economy when prices begin to fall.

“My advice… is that whatever amount of gold sales that is coming… we create that fund just for gold,” he said. “When the price starts to drop, we’ll be able to use it [to] support the gold industry in Ghana.”

He welcomed Ghana’s plans for a refinery to add value, but insisted that a stabilisation fund is still necessary to shield the economy from price shocks.

He also raised concerns about the Gold Board’s financing model, noting that the institution has depended on government support but that promised funds were not fully released in 2025, while the Bank of Ghana is expected to exit financing of the gold trade.

Prof Peprah cited a provision of the law that permits the Gold Board to accept advance payments from buyers and supply them with gold, noting that the model must be examined carefully.

“That model must be really looked at… so that Gold Board does not tend to the next COCOBOD,” he warned.

He stressed that a revolving fund is not the same as a stabilisation fund and stated that Ghana must clearly distinguish between the two structures.

“Revolving fund account is not the same as stabilisation fund account,” he said.

Prof Peprah cautioned that, without adequate buffers, Ghana’s trade position could suffer significantly if gold prices decline.

“If we fail on gold… our trade balance will move into a very struggling position,” he said.