2020
The year 2020 started with the identification of a flu-like virus emerging out of China. Within months it had escalated into a pandemic, sparking a worldwide public health emergency. By mid-year the global economy was in tatters as entire populations were quarantined for sustained periods to reduce person-toperson transmission of the deadly COVID-19 virus.
10
In Review
the widespread shutdown of all major business sectors (including mining) around the world in the second quarter. The subsequent injection of huge monetary stimulus to prevent total economic collapse boosted ‘safe haven’ gold investment to record levels.
A truly unp
many precious metals producers delivered record revenues this year while maintaining balance sheet responsibility – a lesson learned from the previous bull market. The near-term future remains bright for firms exposed to gold and silver.
So, how has the commodities sector fared throughout this year of shocking developments that have led to seismic - and probably permanent - changes to the very functioning of societies and the global economy?
The bull run reached a crescendo in August when the gold price hit US$2,068 per ounce, before cooling off in the last quarter of the year. Gold’s little brother silver enjoyed a similar meteoric rise in 2020, nearing $30 per ounce before settling at the $24 mark by year-end.
Another key trend emerging out of the pandemic was an acceleration of the global transition to low carbon energy. Even the oil majors are leading the charge into clean power after crude prices crumpled to historic lows in April, with the long-mooted ‘peak oil demand’ moment already reached in 2019 according to BP.
Well, the gold price was already on a gallop prior to
Thanks to a supportive macroeconomic environment,
This hastening shift away from environmentally degrading
Record gold prices
