Even though the pandemic is affecting sectors such as aviation, trade, oil and gas, and tourism, gold mining companies are making gains.
Gold mining firms project an increase in returns as the commodity’s price rises
The economies of many countries are being affected by the coronavirus pandemic.
Analysts of the sector have projected an increase in returns after the pandemic since the price of gold has increased in the past three months due to low supply, as economic activities have slowed down.
The global developments due to the pandemic have made people consider gold as a store of value as some stocks have witnessed a reduction in value.
For example, the stock market in the USA crashed to its worst day since 1987 after the outbreak of the COVID-19. Business-related events around the world have been cancelled, leading to the loss of millions of dollars.
The CEO of Golden Star Resources, Andrew Wray, told Accra-based Citi FM that 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.”
Outbreak of coronavirus in Ghana
Ghana has so far recorded six cases of the novel coronavirus. All 6 cases are imported into the country.
The government has subsequently banned 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.
Over 7,000 people have died worldwide from the virus which started spreading from China.
Meanwhile, Italy is currently the most affected country.
More than 180,000 cases have also been recorded in over 120 countries, with over 78,000 also people recovering.
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