2025 Investment Outlook, Forecasts, and Why It’s a Smart Move for South Africans to Invest in Gold Today.

Over the past year, the gold market has experienced a significant surge in demand, and many South Africans are taking note of gold as a solid investment opportunity. Whether you are looking to protect your wealth, invest, or sell your gold jewellery for a good price, now is the time to pay attention to what is happening in the gold market.

The traditional mindset of investing in gold has been a go-to during times of economic uncertainty. Many of us feel the financial pinch due to the currently unstable global economy and have noticed a significant increase in gold prices. As a precious metal, gold possesses characteristics that qualify it as a uniquely strong and tangible store of value.

How is Gold Priced in SA?

Gold prices in South Africa aren’t determined locally — instead, they largely follow global trends. This is because the worldwide price of gold is set in US dollars. The international gold price (also known as the “spot price”) is determined on big commodity exchanges, such as the London Bullion Market. Here are some factors that influence the price of gold:

Rand vs. US Dollar: A weaker rand can indirectly push local gold prices up, even if the global price stays steady.

Supply and demand: If more people are buying gold (which is exactly what is happening now), prices tend to rise.

Economic uncertainty: When the markets are shaky, gold becomes a safe and attractive place for investors to store value.

How Global Gold Prices Affect Us

Simply put, when the global gold price rise, South African mining companies tend to do better. They generate more revenue and, in some cases, even reopen older mines. This is good for jobs, exports, and our economy as a whole.

But when prices fall, things can quickly go the other way, with mine closures, job losses, and less output. That’s why it’s important to keep an eye on international trends if you’re thinking about investing in gold.

What to Expect in 2025 and Beyond

Goldman Sachs recently made headlines by forecasting that gold could hit $3,700 per ounce by the end of 2025. If this is correct, we could see South African gold prices surge between 57% and 75% by the end of 2025. The outcome largely depends on the rand–dollar exchange rate, as a weaker rand means even higher local gold prices. Based on current figures, the rand is trading at about R16.67 to the US dollar.

Let’s consider two exchange rate scenarios. If the rand stays around R16.67 to the dollar, gold could reach R61,679 per ounce (about R2,176.46 per gram). On the other hand, if the rand weakens to R18.50, the price could climb to R68,450 per ounce (around R2,414 per gram).

Either way, South Africans may see a 57% to 75% increase in gold prices by the end of this year. While the outcome depends on global trends and the rand’s performance, one thing is clear — gold is on the rise. If you’re looking to grow your investment wealth through gold, let Gold and Diamond Traders work with you to expand your portfolio with trusted expertise and quality assets. Contact us today to arrange a consultation. Our office is centrally located in Durbanville, Cape Town.