Keep up with the latest spot price of gold to better manage your gold investments and understand the best time to trade. Whatever your investment objectives, from hedging to income growth or diversification, the gold price in South Africa can play a critical for your investment strategy in 2024 and the future..

The gold price (ZAR) in South Africa Today:

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What Affects the Price of Gold?

Safe Haven During Uncertainty

Gold becomes a safe haven investment, with the price typically increasing, during perceived stock market risks. Over the past 6 years, events like the US/China trade wars, Brexit, and the novel coronavirus have driven gold’s value. Investor uncertainty sent the price of gold to its highest recorded value of R35 947.90 ($2 067.15) per ounce in August 2020.

Current Geopolitical Tensions

Today, tensions between Russia, Ukraine, and their allies have boosted demand for gold, resulting in a 4.2% value increase in February 2022.

South Africa’s Unique Factor

In South Africa, the price of gold is further impacted by the exchange rate between the South African Rand and US Dollar (USD).

How has gold performed since 2000?

Gold has performed remarkably over the last 22 years, having increased in value by over 558% since 2001, where it traded around the $271/oz. mark (down from $320/oz. the year before).

Beginning in 2000 in the wake of the ‘dot-com crash’ of internet-related company stock, until registering its then-highest spot-price of $1 928 in 2011, gold experienced a tremendous, near-perfect run, interrupted only by the 2007-2008 financial crisis.

The next decade saw falling commodity prices as the market entered a period of correction following the previous years of super cycle, with gold falling to a low of $1 062.63 on December 14, 2015.

A general rally over the next five years culminated in 2020, where on August 7, gold traded at its highest price ever of $2 067.15/oz, where investor fears during the coronavirus pandemic drove the metal to unprecedented value.

Read more about investing in gold in 2022 and why now is the best time to invest in gold shares.

Gold Stats in South Africa

  • In 2023, South Africa produced an estimated 110 tonnes of gold, marking a 2.2% year-on-year growth as of October 2023.
  • South Africa is home to the world’s deepest mines, including Mponeng (near Johannesburg) and Driefontein mines, which have a vertical depth of nearly 4 000 m.
  • The first gold discovery in South Africa was alluvial gold, found in the Barberton area in the 1880s.
  • There are currently 522 operational gold mines in South Africa, with additional mining projects in various phases of development.
  • The Witwatersrand basin is the world’s largest gold resource and has produced about 40% of the world’s mined gold.
  • Gold contributed about 14% of South Africa’s revenue from minerals, behind PGM (platinum, palladium, and rhodium) sales at 28% and coal at 19%. Sales from South Africa’s mines were valued at approximately R654 billion in 2023
  • South Africa is now the world’s 8th largest producer of gold. It is the 2nd largest producer of gold in Africa, after Ghana (since 2019). South Africa produces 4.2% of the world’s annual gold output.
Statistics of the gold rate in South Africa.

Tracking the gold rate in South Africa

Gold mining in South Africa can be divided into four phases:

The first stage covers the period from first discovery in the 1880s to the Union of South Africa in 1910. The period is marked by rapid growth in gold mining activities, both in the area around Barberton as well as the Witwatersrand, and interrupted only by the Anglo Boer War from 1899-1902.

The second phase, from 1911 to 1950, is characterised by slowing growth rate, largely due to the outbreak of the First World War, the Rand Rebellion in 1922, the effects of the Great Depression in the late 1920s, and finally the Second World War. Gold production in this phase peaked at approximately 450 tonnes in 1941.

During the third phase, South Africa’s gold production grew remarkably from 400 tonnes in 1951 to 950 tonnes in 1965, through new goldfields in Carletonville, Klerksdorp, the Free State and Evander areas becoming operational.

Apart from the period 1966 – 1970, the fourth phase is characterised by a general decline in mining production, from 1 000 tonnes of gold mines in 1970, to 100 tonnes in 2021.

The current gold rate of production in South Africa

South Africa produced a reported 110 tonnes of gold in 2023; increasing by 2.2% year-on-year. South Africa’s gold output reached a peak in 1970, where, as the world’s #1 producer of the precious metal, over 1 000 tonnes of gold were produced.

Should You Invest in Gold?

Investing in gold can be a strategic way to diversify your portfolio and provides a hedge against inflation and economic instability. Gold has historically maintained its value over time, making it a reliable store of wealth. To determine how much of your portfolio should be invested in gold, consider your financial goals and risk tolerance. Read our comprehensive guide for more insights.

Frequently asked questions:

What is the price of gold in South Africa?

As of May 2024, the current spot price of gold in South Africa is ZAR 42,966.51 per ounce (US$ 2,313.52 per ounce). A gram of gold sells for ZAR 1,381.56 (US$ 74.41), and a kilogram of gold sells for ZAR 1,381,560 (US$ 74,410) .

What is the highest price of gold in history?

The highest price of gold ever recorded occurred on August 7 2020, where gold traded at US$2 074.88. This occurred in the midst of stock market uncertainty during the early months of the Covid-19 pandemic. Gold’s previous highest price was on September 6, 2011, when it briefly touched US$1 928/oz.

Is gold cheap in South Africa?

Even after decades of gold mining in South Africa, there are still gold projects where it is mined cheaply. At Pan African Resources’ tailings retreatment plants, Barberton and Elikhulu, gold is mined at all-in sustaining costs of just US$643/oz. and US$708/oz. respectively.

What is the price of gold per gram in South Africa?

The current price per gram of gold in South Africa is ZAR 1,381.56. An ounce is 28.35 grams. For a kilo of gold, expect to pay ZAR 1,381,560. View our gold price chart to see the live gold price.

How can I buy gold?

You can buy physical gold bullion, gold coins (such as the Krugerrand) and gold bars, as well as jewellery; or invest in gold mining stocks or exchange-traded funds (ETFs).

Can Gold be used as an Inflation Hedge?

Yes, gold is often used as an inflation hedge because it tends to maintain its value over time. When inflation rises, the value of currency declines, but gold prices typically increase, helping to preserve purchasing power.

Why does buying gold cost more than the actual spot price?

Buying gold costs more than the spot price due to additional factors such as premiums, which cover manufacturing, distribution, and dealer costs. These premiums can vary based on the form of gold (coins, bars, jewelry) and the quantity purchased.

How To Invest in Gold

There are many ways to invest in gold. Other than purchasing shares in gold mining companies or investing in gold mutual funds, you can also buy physical gold (coins, bars, jewelry) or invest in gold exchange-traded funds (ETFs). Each method has its own advantages and considerations, so it’s important to choose one that aligns with your investment goals and risk tolerance.

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