In 2025, both gold and silver have surged as favoured safe-haven assets amid global uncertainty, but investors in South Africa must weigh nuanced benefits specific to these metals.
Gold: Stability Backed by Local Strength
Gold continues to shine—globally and domestically:
- Record prices: Spot gold neared all-time highs, reaching around $3,477 per ounce, fuelled by U.S. interest rate cut expectations and inflation pressures.
- Local mining surge: South Africa’s Gold Fields anticipates a 236% increase in half-year earnings, thanks to both soaring gold prices and a 24% jump in production, especially from the Salares Norte mine.
- Mining majors outperforming: Companies like Harmony Gold and AngloGold Ashanti have seen share prices hit new highs, with investors gravitating toward their stocks amid inflation and the search for safe havens.
- Cultural heritage: Gold remains deeply embedded in South African identity—most visibly through the iconic Krugerrand, minted since 1967 and historically a global gold coin leader.
Silver: The Unexpected Star of 2025
Silver has been stealing the spotlight this year—outpacing gold on several fronts:
- Top-performing commodity: Silver has soared 34% year-to-date, earning the title of the best-performing commodity of 2025.
- Breaking long-standing barriers: It surged above $40/oz, reaching its highest level since 2011.
- Undervalued comparative momentum: Rising demand—especially from industrial sectors—and investor interest have pushed silver ahead of gold’s 28% gain and even Bitcoin’s 18% gain for the year.
The South African Angle: Opportunities & Challenges
- Gold’s deep roots, but fading future: South Africa still holds substantial reserves—estimated at 68 million troy ounces, enough for another 27 years at current extraction levels. However, rising production costs and aging infrastructure are shrinking gold’s contribution to GDP (from 20% in the 1980s to just 6.3% in 2023).
- Mining equity undervaluation: Despite strong fundamentals, precious metals equities in South Africa and globally remain undervalued. Analysts point to a disconnect that may lead to significant upside as consensus pricing catches up.
Final Thoughts
For South African investors, gold remains the cornerstone—rooted in tradition and backed by national mining strength. These attributes make it a dependable choice in times of economic stress.
However, silver is emerging as a compelling growth story: outperforming globally, breaking price barriers, and benefiting from both industrial and investor demand.
Diversifying across both metals—holding gold for stability and heritage, and silver for upside potential—may offer the best of both worlds in this dynamic 2025 market.
