The rally has lifted other precious metals, including platinum and silver, and has contributed to a stronger Rand, which appreciated by an estimated 14% against the United States (US) Dollar last year and a further 3% so far this year.<\/p>\n
<\/p>\n
Speaking to Channel Africa on Monday, Peter Major, Director of Mining at Modern Corporate Solutions, described the surge as a \u201cperfect storm\u201d driven by multiple global pressures, including rising geopolitical risk, supply insecurity and unconventional economic policy in the US. \u201cCountries now feel they must secure their own resources because they cannot rely on others,\u201d he said. \u201cThat\u2019s creating a huge squeeze in resources.\u201d<\/p>\n
<\/p>\n
Major pointed to political and monetary pressures in the US, saying markets are increasingly pricing in concerns over large\u2011scale money printing and interference in interest\u2011rate policy. \u201cIf the currency keeps depreciating, people don\u2019t want to hold it. They want to hold something that keeps value, and gold fits that bill,\u201d he said.<\/p>\n
<\/p>\n
He added that a growing number of countries are seeking to reduce their reliance on the US Dollar, increasing demand for real assets such as gold, silver and even industrial metals like copper and tin.<\/p>\n
<\/p>\n
South Africa, he noted, remains heavily dependent on commodity prices despite the shrinking size of its mining sector. The record gold price is expected to significantly boost mining revenues and tax earnings. \u201cIf the gold price doubles, income taxes can go up three or four times,\u201d Major explained.<\/p>\n
<\/p>\n
However, he warned that investing in gold at current levels is \u201cgambling\u201d rather than a long\u2011term investment, advising caution and suggesting mining equities as a less risky alternative.<\/p>\n
<\/p>\n
–ChannelAfrica–<\/p>\n","protected":false},"featured_media":22918,"template":"","meta":{"_acf_changed":false},"news-type":[44],"class_list":["post-22917","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"The global price of gold has surged to an all\u2011time high, surpassing $5\u202f100 per ounce, as investors and central banks increase their demand for safe\u2011haven assets amid geopolitical uncertainty, market volatility and weakening major currencies. ","published_date":null,"news_description":"The global price of gold has surged to an all\u2011time high, surpassing $5\u202f100 per ounce, as investors and central banks increase their demand for safe\u2011haven assets amid geopolitical uncertainty, market volatility and weakening major currencies. ","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22917\/revisions"}],"predecessor-version":[{"id":26055,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/22917\/revisions\/26055"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/22918"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=22917"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=22917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}