Gold Breaches R18000/oz in South Africa, Up 11% In Two Weeks!


The price of Gold breached R 18,000/oz for the first time ever on the 11th of January 2016 in South Africa (R = Rand). It is currently standing on R 18,239/oz.

Let’s take a look at the price of Gold in South African Rands (ZAR) over the last 30 years, and the returns a saver would have earned had they bought and held Gold over various time periods since then:


You will be hard pressed to find an equity fund in South Africa that outperformed Gold over the last 10 years.

Over the last 10 years Allan Gray’s Equity Fund only managed a 14.3% annualized return, while Coronation’s Equity Fund delivered an annualized return of 15.2%, according to their latest fund commentaries. Neither of these two examples take into account the rather spectacular fall we saw in the equity markets over the last two weeks.

Even though Gold performed so remarkably well, the financial services industry and mainstream media still has an overwhelmingly negative opinion about Gold.

If you are wondering why none of those extremely intelligent and well educated financial people are talking about these admittedly uncomfortable facts… well… I’m wondering too.

Gold as an inflation hedge

Throughout the ages, Gold has consistently been a safe haven preserver of wealth for people who had to live through times where inflation eroded the purchasing power of the fiat currencies they used for their day-to-day business.

If you stored your wealth in Gold while living through the hyperinflation of the German Mark in the Weimar Republic during the early 1920s, you would have been largely protected from having your wealth eroded away. The same is true for the many people who experienced very high or hyper-inflationary debasements of their fiat currencies more recently: the people of Argentina, Zimbabwe, Venezuela and the Ukraine know all too well what I’m talking about.

South Africans who chose to store their wealth in Gold were also protected from the inflation that plagued the South African Rand since, well… since its inception.

Over the last 10 years Gold did an even better job of protecting people against the loss of purchasing power of the Rand than did the vast majority of equity funds, retirement annuities and pension funds.

Owning Gold is one of the best forms of insurance you can have against being the victim of the theft of inflation.

If you live in any country like South Africa, where there is a high possibility of continued weakening of the local currency, it certainly is a good idea to store a sizeable part of your wealth in Gold.

READ MORE: Gold Breaches R18000/oz, Up 11% In Two Weeks.

One of my readers brought my attention to this article.  This goes to show how gold is an excellent hedge against falling currencies.  While this is not taking place in the United States… it’s just a matter of time before it does.

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18 Comments on "Gold Breaches R18000/oz in South Africa, Up 11% In Two Weeks!"

  1. Seems to me the last couple week was a fine time to be adding Phyzz……

  2. If the USD breaks 100 to the upside, 120 could be where it’s headed. If this happens, gold will most likely fall quite a bit. Or is the USD topping right now and gold bottoming. Only time will tell but right now it looks the USD has a good chance of breaking out to the upside.

  3. Canadian dollar dropping>gold up +/- $100.00 CA this new year!

    • OutLookingIn | January 17, 2016 at 7:53 pm |

      Gold in CAD as of December 2015 $1,475.15
      As of market close Friday January 15 $1,583.44 Up almost 7% in CAD

      Gold is up in almost every world fiat currency except the US dollar!

      When the US dollar does go south, the American public will be caught flat footed. Without any prior warning of the popularity of gold and protecting their wealth. At that point there will be NO SUPPLY at any price. Gold will go NO BID or OFFER.

  4. I enjoy reading your articles, Mr Rocco. Very insightful. But…
    I looked at a comparison of the ZAR and the USD. 1 ZAR equals .059 USD. If you do the math, the 18000ZAR equals $1067. Which is currently slightly lower than the current spot price. Am I missing something?


    • Looks right to me…

      USD 1 = ZAR 16.75

      Gold price in ZAR: R18200
      Gold price in USD: $1090

      18200 / 1090 = 16.69

    • Yes in the Rand as well as Canadian, European, and most other currencies one would have increased their net worth if they had bought gold in recent years. In some countries their net assets would have increased significantly, while fiat buying stocks bonds etc. would have had a lower or negative yield over the same time. Part of that is understood when one realized the dollar’s strength compared to other fiat currencies. Part of it is the gold suppression is specifically geared towards making the dollar & the U.S. stock markets appear solvent and strong. Part of U.S. citizens’ myopic view on money and finance is to see it only through dollar colored glasses…not having a bigger vision or understanding.

    • Do you see what happens Larry when you compare the ZAR buying power with the $?

      How much gold would buy a jan. 2001 ZAR?

  5. David Matthew | January 18, 2016 at 1:15 am |

    What Has the silver price done in South Africa over this period

  6. Gold and especially are going to crash again as soon as stock markets get a little bounce.
    All comex prices bounces are destroyed in matter of hours and not days like in the past.

  7. The mainstream media will always have a negative opinion about Gold. So far it was because they wan’t to keep the current paper money scam afloat and in the future it will be pure enviousness.

    • I think you are correct in that. Even when it goes up priced in dollars it is somehow dirty becasue I, the MSM talking head, don’t have any.

  8. silverfreaky | January 18, 2016 at 9:37 am |

    Now it*s clear what happens.They smash the small miners so long until they are brocken.Then the big one(who are in the duty of the banksters) get them for an apple and an egg.The stockholder has lost all money.

    The stupidness oft tose miner managments ist infinitely.

  9. silverfreaky | January 18, 2016 at 9:50 am |

    The high silver output has broken the neck of the silver and siver stock Investors.
    Only panic can help us.Otherwise we can sit and wait until our beard reaches to the street.

  10. silverfreaky | January 19, 2016 at 9:38 am |

    HUI made a new low!

  11. silverfreaky | January 19, 2016 at 9:41 am |

    Even the new market was an blue chip against the miner stocks.

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