The coronavirus pandemic is hitting the economies of many countries, and affecting sectors such as aviation, trade, oil and gas and tourism; nonetheless, gold mining companies are making gains.
Players in the sector say they’re anticipating increased returns in the wake of the pandemic, as the price of the commodity has witnessed increases over the past three months due to low supply, as economic activities have slowed down.
According to some producers, global developments associated with the coronavirus pandemic has made people consider gold as a store of value as some stocks have witnessed reduction in value.
In the USA for instance, the stock market crashed to its worst day since 1987 following the outbreak of the virus. Several business-related events around the world have been cancelled, leading to the loss of millions of dollars.
Speaking to Citi Business News, CEO of Golden Star Resources, Andrew Wray, said they are hopeful of sustained increased returns on their investments.
“Gold holds its value which is exactly what we have seen happening during the last two or three months. So, it means the price of our product has remained strong. The demand has remained strong unlike in almost any other industry. They were seeing less activity, lower prices, less movement, so business is becoming tougher. So, in that respect, gold is in a stronger position. It has to do with all of the health impacts like in any other business. But at least from a price and demand perspective, it is relatively in a better position,” he said.
Outbreak of coronavirus in Ghana
So far, six cases of the novel coronavirus have been confirmed in Ghana, all of which were imported into the country.
This has led to government banning all public gatherings including conferences, workshops, funerals, festivals, political rallies, church activities and other related events as part of measures to stop the spread of coronavirus in the country.
Coronavirus statistics so far
Over 7,000 people have died globally, with China the source of the virus, and Italy being the most affected out of
More than 180,000 cases have also been recorded in over 120 countries, with over 78,000 also people recovering.
Citibusiness