Gold mines expect increased profit as Covid-19 slows economic activity

Gold mines expect increased profit as Covid-19 slows economic activity

- 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

- Unlike other commodities, a weaker supply actually benefit the price of gold

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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.

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As 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.

READ ALSO: Keri Hilson: Claims coronavirus isn't big in Africa for lack of 5G

In other news, Briefly.co.za reported that as coronavirus spreads across the world and the death toll climbs every day, health experts have been working to develop a vaccine to combat the deadly virus.

The efforts appear to be yielding results as the United States government announced that a clinical trial to test a coronavirus vaccine had begun on Monday.

The first human participants will receive an experimental dose to test for potential side effects, but they will not actually be infected with the Covid-19 virus, according to the source.

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Source: Briefly.co.za

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