Why gold prices are getting a big boost from coronavirus – The National

Why gold prices are getting a big boost from coronavirus – The National

Why gold prices are getting a big boost from coronavirus. Peter Cooper compares today's higher prices with those seen after the global financial crisis of 2008-09. Gold prices closed last week at seven-year highs and are set to head even higher.. Even if the stock market's sell-off and rally is followed by another fall - similar to the pattern seen during the 2008-09 global financial crisis - gold prices will not suffer a further significant reversal.. Gold prices did not plunge again after the initial 2008 sell-off, and carried on up and up to a new all-time high in 2011.. Meanwhile the supply of monetary metals remains almost static, and so their price goes up.. There is talk the bank might have to sell gold to help close the gap.. But investors should also consider buying the shares of companies that produce gold and silver.. Look back to autumn 2008 and note how these stocks did not follow the rest of the stock market into a second down leg.. Market leader Newmont Mining (NEM), for example, saw its shares dive with the general stock market until mid-October 2008 and then kept on rallying higher when the market crashed again in