No object can make you think of wealth and affluence like gold. Since the early days of civilization, gold has been used as currency, a symbol of wealth, and an object of beauty across nations and cultures.
Historically, gold has been a safe-haven asset for many investors. During times of turmoil and economic unrest, investors turn to gold and rely on its stability. While currencies go up and down, gold’s value remains.
Below, we discuss the gold price in South Africa today, market trends, forecasts, and why gold plays a fundamental role in our economy today and beyond.
The gold price in South Africa Today 2024
Gold prices have soared to new highs this year, reaching ZAR 46,000. This is the highest recorded rate of gold in our history.
As of writing, gold is selling between ZAR 32,159.70 and 46,101.16 and has a total market capitalization of USD 17.508 trillion. It currently has the biggest market capitalization of any asset in the world. Right below it is Apple at USD 3.3 trillion.
See the table below for more details.
| ZAR | USD | |
| Per ounce | 45,888 | 2,583 |
| Per gram (24K) | 1,464 | 83 |
| Per kilogram (24K) | 1,473,827 | 82,991 |
| Range | 32,159.70 – 46,101.16 | 1,823.50 – 2,614.60 |
| Market cap | 17.508 trillion | |
| All-time high | 2,583.80 |
The current gold market
2024 is a historic year for gold – and we’ll probably see movies made about this era in years to come. With a 47% price hike in one decade – investors, managers & bankers are all puzzled at the sudden rally.
Typically seen as a haven in periods of economic turmoil, a gold surge was expected, just not at this rate. Triggered by the Russian invasion of Ukraine, public and private investors see gold as security against the unstable economy.
Quick facts: The Organization for Economic Co-operation and Development (OECD) projected a 5% global economic growth for 2022. However, the economy grew only 3.1%, citing the “shock” of war as a main factor for the stunted economy.
Among other factors, the price surge has also been attributed to a burst of gold buying from central banks worldwide.
Aggressive central bank buying
Central banks in China, Turkey, India, and Poland aggressively purchase gold.
Within the first quarter of 2024, they have collectively purchased ten metric tons of gold, which is 69% higher than central bank purchases from last year. China alone purchased a total of 906,400 troy ounces.
Buying gold when central bankers are doing it is a sound, bankable strategy for long-term investors.
China: driving the price of gold
Although the Covid-19 lockdown triggered gold’s momentum, Russia’s invasion of Ukraine, and the war in Gaza, the Chinese market is sustaining its steady high price.
Chinese consumers flocked to gold as their confidence in traditional investments – real estate and stock – has faltered.
According to the China Gold Association, gold consumption rose by 6% in 1Q 2024. Factor in the People’s Bank of China’s (PBOC) gold buying spree, there is a growing sentiment that the gold market is no longer governed by global economic factors but by the whims of Chinese buyers and investors.
Investing in gold has become commonplace in China, staying true to an old Chinese saying: “jade in prosperous times, gold in troubled times.”
Speculators are betting this trend will continue, and gold prices will soar to newer highs.
Gold forecast and predictions
Being one of the most vital metals in the world, gold has a unique quality no stock or currency could ever have – intrinsic value.
Long-term investors expect gold to continue to act as a hedge against market volatility and uncertainty. In general, the outlook for gold remains positive and steadfast.
Five year forecast: reaching for the sky
The outlook for gold is unwavering for the next five years. Analysts expect a ceiling price as high as $3000 an ounce or a 25% increase from current levels. The floor price will range between $1850 – $2000.
Technological advancements in mining and electronics and shifts in consumer demand will maintain gold as an integral part of our economy.
Where does gold’s price come from?
Before investing in gold, we must first understand where the price of gold comes from.
Gold prices are determined by inflation and supply-and-demand factors, which are determined by macroeconomic and political events chained together.
Let’s consider these world events:
- The COVID-19 outbreak caused a global economic shock three times worse than the 2008 financial crisis, meanwhile, gold peaked at $2,058 – previously its all-time high before 2024.
- In 2022, Ukraine was invaded by Russia – Europe’s top oil supplier – causing a 1.3% increase in global inflation. Gold prices remain high at $2,043.
- Real estate, once a stable investment for the Chinese, is experiencing a crisis unlike any before. While projects stopped and estate developers filed for bankruptcy, private and public demand for gold is at an aggressive rate.
Historically, investors seek gold during times of geopolitical unrest and uncertainty, which increases demand and snowballs prices.
Investing in gold in South Africa
Gold remains a reliable haven for South African investors. The precious metal has reaffirmed its value with a 11.31% increase in value in the country.
If you are investing in gold in South Africa, looking at the country’s economic status to guide your investment strategy is important. The region has experienced over a decade of weak economic growth and an average inflation rate of 5%.
While the SA government recovers its economy, gold still represents a solid investment.
How to buy gold in South Africa
As the world’s eighth-largest producer of gold, South African investors have an array of options for investing.
Any form of investment has its risks and benefits. A genuine community of traders will allow you to learn and grow, whether you are a beginner or an advanced trader. Do your research, consult your peers, and make informed investment decisions!
Physical gold: How to buy gold in South Africa
The most common measure of weight for gold is a troy ounce (as such with other precious metals). You may also purchase gold in the form of coins, bullions, nuggets, bars, jewelry, or through other collectible items.
Physical ownership means having the actual asset in your possession. As such, large quantities of gold must be stored in secure vaults.
Mining stocks
Investing in gold mining stocks isn’t the same as possessing gold. However, you are investing in the company’s ability to find and produce gold.
The value of these stocks can go up or down depending on the company’s production. Gold mining stocks can be traded through the Johannesburg Stock Exchange.
Major gold mining companies in South Africa include Gold Fields, AngloGold, and Harmony Gold.
Gold ETFs
Gold exchange-traded funds allow you to invest in gold without buying or storing physical gold. These are also traded on the stock exchange and can be accessed through a brokerage.
ETFs are considered a top option for beginner traders interested in gold. You can trade gold easily and at any moment!
