Gold & Global Warming (10 of 16 Articles Series)
Gold and global warming risk would require a comprehensive overview of the current status of gold's climate impacts and how the sector might adapt in the face of climate change. According to researchers, global temperatures have been steadily increasing since the start of the 21st century. [1]
This has caused a variety of climate hazards, such as extreme weather events, droughts, and sea level rise, that could potentially impact the gold sector.[2]
Mining companies must take into account the potential impacts of climate change, such as stricter regulations, difficulty in obtaining permits, and higher costs of operation.[3]
They should also consider potential opportunities, such as shifts in demand for gold products due to changes in regulations or technology. In addition, companies should develop strategies to reduce their environmental footprint, such as use of renewable energy, adoption of circular economy practices, and more efficient extraction processes.
In conclusion, gold and global warming risk are linked, and mining companies must take proactive steps to ensure their business is sustainable in the face of a changing climate.
Therefore, and based on above one may speculate that gold price has a potential to increase more than decline.
Considering today’s high demand on gold and other precious metals by governments, financial and banking, high-tech, aerospace and the jewelry industries it would be very challenging to restrict mining industry from exploring more and more gold potentials on earth and hence this would also increase demand on gold and eventually gold price than decline despite potential global warming risk. ?
As always, it is important to consult with a financial advisor before investing to ensure you make the best decision for your situation.
领英推荐
Motaz AlBashitie