Ebola has finally reached the United States, and if it spreads further, there could be significant cause for worry for every American.
But if you invest in gold, you should already be keeping a close eye on the latest Ebola news.
The price of gold could be affected by Ebola even if the United States is able to contain it.
This is because the virus continues to wreak havoc across the African continent and many countries that are major gold producers have already been affected. Liberia, Sierra Leone, and Guinea have all confirmed outbreaks. Mali, a bordering country, is the world’s 15th largest producer of gold.
The UN has opened its Ebola headquarters in the country of Ghana, which is the world’s 10th largest gold producer, and largest producer in the region, with 9 of the 30 operating mines.
So far, the outbreak has only directly affected one mining company, ArcelorMittal, the world’s largest steel producer. The company recently announced it would be forced to delay the expansion of new mines in the region after 15 contractor companies evacuated their employees.
Deutsche Bank has noted that many mining companies will be able to continue operating as long as they do not have to rely on foreign labor. Due to the remoteness of most West African mines, a large number of workers are local and do not have to travel long distances which could protect the mines from the spread of the disease.