As the stock market plummeted Monday on fears of the global economic impact of coronavirus, the price of gold was trading at more than $1,650, 25 percent higher than it was a year ago, with some analysts expecting the price to go nowhere but up anytime soon.
Gold is a “safe haven” — when other sectors of the economy face threats that could slow production and revenue, such as the threat posed by COVID-19, investors flock to gold, a counter-cyclical commodity that tends to increase in price when other investments aren’t performing.
And coronavirus isn’t the only factor that could produce much higher prices for Nevada’s gold mining industry, at least according to one industry analyst.
If Bernie Sanders is elected president, “the price of gold will be well above $2,000 on the day after election night,” Euro Pacific Capital’s Peter Schiff told Fox Business News (quoted in the Elko Daily Free Press).
Sanders has a long way to go before he wins the Democratic nomination, let alone the presidency. And whoever the Democratic nominee, voters in the handful of heavily Republican rural Nevada counties where multinational mining companies extracted more than $7.2 billion worth of gold in 2018 can be expected to overwhelmingly support Donald Trump in November.
But if the analyst’s fears are widely held throughout the industry, and if Sanders does manage to secure the nomination, perhaps the management offices of Barrick and Newmont, or “Nevada Gold Mines” as the transnational mining giants call themselves since merging Nevada operations last year, will suddenly be home to a whole new variation of Bernie bros.
Sanders always says he’s building a broad coalition.