Barrick Gold Chief Executive Officer Mark Bristow says investors should think of gold as an insurance policy that offers financial security as the coronavirus pandemic wreaks havoc on the economy. Appearing on CNBC, Bristow said, “We’re giving investors the opportunity to have a self-funded insurance policy against a global financial crisis.”
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Many investors appear to agree with Bristow’s sentiment, as demand for gold has soared since the COVID-19 outbreak, driving the price of gold above $1,700 an ounce.
Barrick Gold, the second largest gold mining company in the world, reported a 55 percent increase in profits during the first quarter. The company has mining operations in North and South America, Africa, Saudi Arabia, and Papua New Guinea.
Bristow said the price of gold is likely to remain strong. “We don’t have reserves in our industry,” he told CNBC. “We’re constantly exploiting lower-quality resources as the price goes up. So we’re not prepared an industry for extra demand.” He also pointed to the Federal Reserve’s aggressive injection of cash into the economy as a factor that will maintain interest in gold. “In response to COVID, we’ve taken quantitative easing to another level, and of course that puts pressure on paper money and you measure that with the price of gold,” he said. “We’ve seen prices go up across the world.”
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