'Safe haven' investing

As rand volatility surges, investors turn to gold for stability

- AZIZ MOTI

ALTHOUGH SOUTH African investors have historically lagged behind their global peers when it comes to adopting alternative investments in the wake of global economic uncertainty, they are quickly rethinking traditional strategies.

With the local currency under pressure, investing in precious metals like gold, silver, and platinum can hedge against the rand's depreciation and preserve wealth.

Gold trading platform ISA Gold supports the views of both global and local economists who believe that geopolitical shocks and continued aggressive trade policies from the US against the BRICS trade block will continue.

These could trigger a retaliatory global trade war and renewed safe-haven demand from investors, who will be likely to move most of their money away from perceived riskier emerging markets to safer developed markets.

This, together with fluctuating and unpredictable US tariffs on imports, the pending review of the African Growth and Opportunity Act (AGOA) this month, and the upcoming review of South Africa's credit rating by S&P Global Ratings' scheduled for November, will continue to see global investment uncertainties escalate.