AFRICA – The surging prices of Gold and other precious metals are offering hope to African economies that have been significantly affected by the raging coronavirus crisis.

Prices of Gold have been surging since the onset of the pandemic, smashing the US$2000/oz mark for the first time in 100 years.

Its price on the international market has averaged about US$1,800/ounce this year, with many market watchers expecting it to close the year at a milestone mark of US$2,000/ounce, especially if a cure for the virus is not found.

The demand for Gold according to analysts has been buoyed by safe-haven buying and global policy support in response to the pandemic.

Silver and platinum (the other two most sought after precious metals) have benefited from a rebound in industrial activity following an easing of containment measures.

Precious metals prices are expected to average 13% higher in 2020 relative to 2019 on expectations of strong demand due to heightened global uncertainty and ultra-low real interest rates.

Acording to Ghana’s Chief Executive Officer of the Minerals Commission, Dr. Toni Aubynn, the surging price of gold and other precious metals in the face of the Coronavirus pandemic offers significant hope to African economies that produce these minerals.

The mineral industry of Africa is the largest mineral industry in the world and is thus poised to reap the greatest benefit of the current surges in mineral prices.

The continent is for instance is the largest producer of Gold, Platinum, and Diamonds accounting for 89%, 73%, and 97% precious mineral respectively.

African countries poised to benefit the most include South Africa, Ghana and the Democratic Republic of Congo which are the biggest producers of the mineral.

In Ghana for example, Gold accounts for 90% of the value of all minerals mined in the country in the face of the slowdown in other sectors due to the pandemic.

South Africa which is the African Giant when it comes to mineral production accounting for 54% of Africa’s total gold reserves and 97% of all platinum produced in the continent is also expected to reap big from the precious metal windfall.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy and more. SUBSCRIBE HERE