Gold producers anticipate increased returns as coronavirus slows down economic activities
- Gold producers have expressed optimism about the ability of the commodity to maintain its value as the coronavirus disrupts industries
- It has been predicted that gold prices would continue to rise as other commodities experience a fall in their prices
- The reason is because of a fall in supply thereby making gold a preferred store of value
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Gold mining firms are hopeful of increased revenues as the coronavirus leads to a slowdown of economies around the world.
Industry players have expressed optimism that the price of gold would rise and make the commodity a preferred option for many people.
Players in the sector argue that there is the likelihood of increased returns because supply has fallen, making gold a preferred store of value compared to other stocks that have witnessed a reduction in prices.
READ ALSO: Coronavirus: Bank of Ghana lists do's and don'ts for Ghanaians and financial institutions
Per a report by citibusinessnews.com, the Chief Executive Officer (CEO) of Golden Star Resources, Andrew Wray, explained that gold holds its value and as such its price has remained strong.
He added that it is in a relatively better position from the demand and supply perspective.
Presently, Ghana has recorded six official cases of the coronavirus, all of which were imported into the country.
As a result, the government has instituted measures such as a ban of public gatherings for a specified time period and a ban on flights from countries with over 200 reported cases of the coronavirus.
In other news, the Ghana Civil Aviation Authority (GCAA) has estimated a 20% reduction in revenue as the number of flights allowed into Ghana reduces.
According to the GCAA, the coronavirus has negatively affected its operations and it may, therefore, have to resort to other means to make up for the shortfall.
GCAA’s Director-General, Ing. Simon Allotey, explained that the company depends largely on charges levied on passengers.
READ ALSO: Coronavirus: ECA estimates that Africa has lost about $65 billion in revenue
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Source: YEN.com.gh
