SA Investor gold rush a response to American tariffs says ISA Gold

“Clients who secured Krugerrands or gold bars through our platform last July are seeing portfolio gains that outpaced inflation and equities.  This is proof that physical gold remains an essential part of any diversified investment strategy,” says Aziz Moti, Chief Operating Officer at ISA Gold.

According to market data, the price of gold has risen from R 43,700/ounces in July 2024 to R62,200 /ounce in July 2025.  It marks an approximate 42.33% increase over the 12-month period. For investors who bought R100,000 worth of gold last year, this translates to a gain of roughly R142,334.10.

Trump’s tariff tsunami and the Reserve Bank decision to take a cautious route and cap the eagerly anticipated drop in interest rates are likely to see an uptick in wily investors adding this age-old safe haven to their portfolios.

Rise in Gold price

Aziz Moti believes that the rise in gold prices – and expected continuation of this upward trend – will continue to be driven by a combination of factors.  They include global economic uncertainty, geopolitical tensions, a weakening US dollar, low interest rates, and a surge in retail investor interest. Central banks – which have incidentally indulged in their own gold buying sprees – have also played a role in increasing demand for gold.

With the outlook for 2025 remaining uncertain, ISA Gold reports a rise in both new sign-ups and repeat purchases from existing clients. The company’s simple onboarding process and dedicated support team have been instrumental in encouraging more South Africans to enter the gold market.

Whilst the company does not offer financial advice, Aziz Moti maintains that recent market forecasts from leading institutions provide insight into potential future trends.

According to Goldman Sachs, the outlook for gold remains broadly positive. The bank recently raised its year-end 2025 forecast to $3,700 per troy ounce, citing sustained central bank buying (averaging 80 tonnes per month) a safe-haven demand, and potential economic downturns as key drivers. In a more bullish scenario, where central bank demand increases to 100 tonnes/month,  or if a U.S. recession materialises, prices could rise to as much as $3,880 per ounce.

This suggests that, from Goldman Sachs’ perspective, the medium-term risks are skewed to the upside, and prices are expected to hold or increase, depending on how macroeconomic conditions evolve.

Aziz Moti believes that the strong showing from gold over the past year doesn’t mean investors have missed the boat.

Investment in Gold continues

“There  continues to be a notable uptick in gold investment particularly through exchange-traded funds (ETFs), digital gold platforms, and physical bullion purchases. This trend is partly driven by concerns over stock market volatility, high inflation, and a growing desire for portfolio diversification. By increasing their gold holdings, central banks and institutional investors have reinforced the perception of gold as a stable, long-term store of value. For retail investors, user-friendly platforms and gold-backed digital assets have made gold more accessible than ever before,” he notes.

ISA Gold’s COO believes the current momentum isn’t just a short-term reaction but part of a larger shift in how investors think going forward: “People aren’t just looking for short-term profits. They’re looking for security, legacy, and tangible value.”

The tendency for savvy investors to switch to gold is not so much a knee jerk reaction or a fashionable fad. Gold has not only outperformed currencies like the US dollar for decades but held its own through world wars, global recessions and a pandemic.

“While cryptocurrencies like Bitcoin have emerged as alternative assets—particularly appealing to younger and more tech-savvy investors—gold continues to hold its ground as the traditional safe-haven asset. In fact, some analysts argue that crypto and gold now coexist rather than compete directly, often serving different purposes in diversified portfolios. According to a 2024 Bloomberg Intelligence report, institutional investors still view gold as a hedge against long-term inflation and geopolitical risk, whereas crypto is often seen as a high-risk, high-reward speculative play,” he says.