Gold is and has been one of the most valuable assets for the producers as well as the users for years. Unfortunately, this year, due to the epidemic of coronavirus, the production and supply of this valuable asset got in the way of disruption and, as a result, the entire operation shutdown. Now that the Gold supply chain has been put to a halt, its worth has surpassed every other mineral with the high demands of investors.
How does market gold differ gold ore?
The form in which the Gold market receives gold is a lot more different than the one miner found it in. The gold ore is first purified properly before stepping into the next stage, called refining, where the gold is refined into its purest form. After the refinery, the gold is transported through various means to a number of hubs situated all the world. The financial hubs then decide how to further market this gold to bag some profit. There are several different countries that hold the top position for the best financial hubs, such as the U.K, Hong Kong, Switzerland, Dubai, and Singapore.
Obstructions in the way of gold chain supply
Unlike previous years, this year, a number of disruptions occurred during the process of gold production, delivery, refining, metal trading, and end-users, causing the entire Gold supply chain to obstruct. To prevent the risk of coronavirus, mines concluded that opening the industries would put an entire batch of workers to extensive danger while, on the other hand, the delivery of gold required extreme charges, which ultimately led to less delivery and then no delivery at all.
Infographic by: Visualcapitalist.com