Coronavirus Disease (COVID-19) Risk

COVID-19 has had an impact on the price of commodities, including an initial decrease in the price of gold following the initial onset of COVID-19 in March 2020. The potential future impact of the pandemic on the price of gold is dependent on what action governments choose to take in the future. For example, if governments choose to respond to their specific COVID-19 situation with further lockdowns, the risk becomes akin to anything that would represent a demand shock due to declining economic activity. China has been an example of this policy, and as the world's second biggest economy and a major demand source of all commodities, the result of lockdowns imposed by China has been the evident downward price pressure on precious metals in 2022. It cannot be predicted how COVID-19, the ongoing global response and public sentiment will affect gold prices. Such effects may be significant, may be long term in nature and may lead to a decline in the price of gold and Gold Token holders thereby suffering unexpected loses.