Gold is a dense, non-reactive metal that has been used for centuries as a store of wealth. Gold has been valued for its beauty and rarity since ancient times. Gold is also one of the few commodities that can be traded in all countries and internationally.
The price of gold fluctuates every day as it responds to economic conditions and changes in supply. The “spot” price of gold is quoted on the world’s financial markets, which are open 24 hours a day, five days a week (Monday through Friday).
A major factor driving the spot price of gold down over time has been inflation – the devaluation or loss of purchasing power because of an increase in prices for goods and services.
In South Africa, there are about 3500 metric tons (MT) of gold reserves worth about US$120 billion at current prices.
How much gold is produced in South Africa each year?
The gold production in South Africa decreased to 101.3 tonnes in 2019 from 117 tonnes in 2018. At the current gold price more than half of the South African mines are not profitable.
It is important to note that this decrease is not because of decreased demand for gold, but due to increased mining costs and electricity prices.
Which banks are involved in the South African gold market?
The South African gold market is a major player in the global gold market. The majority of the gold mined in South Africa is traded on the Johannesburg Stock Exchange through various mining companies.
The major players in this market are Anglo-American, Gold Fields, Harmony Gold Mining Company and Sibanye Gold Limited.
