Gold glitters in COVID-19 storm

Gold miners in Ghana and elsewhere could become one of the few gainers from the raging novel coronavirus disease (COVID-19) after the uncertainty in the global economy from the viral spread boosted the precious mineral’s safe-haven status to record levels.

Between January 3 and April 8 , this year, prices of the precious metal surged by about 4.2 per cent to U$1,613.1 per ounce, according to data from the World Gold Council.

At U$1,613.1 per ounce as of April 3, gold prices were now in their seven-year high, with experts predicting that the price surge could remain for as long as the COVID-19 pandemic continues to dampen investors’ appetite in financial instruments.

Here in Ghana, miners under the umbrella of the Ghana Chamber of Mines, are excited about the gold price increment but fear that supply chain constraints resulting from measures to contain the COVID-19 would dampen production, leading to decreased benefits from the bullish prices.

So far, no mine has reported significant disruptions to operations due to the pandemic although one mine has recorded a case at site.

Future of gold price

An Economist and Research Fellow with the Institute for Fiscal Studies (IFS), Mr Leslie Dwight Mensah, told the GRAPHIC BUSINESS that “gold should continue to do well for as long as demand remains strong.”

He explained that the current low interest rates in the world in response to the viral spread had successfully shifted investors’ appetite from financial investment instruments to gold and gold-backed instruments.