Gold shares stay strong

BULL MARKET: EVEN AFTER RECENT DIPS, PRODUCERS' PROFITS, CASH FLOW UP

- Adriaan Kruger

Gold shares have had a good run since January, pushed by a 62% increase in the gold price.

The share prices of the big South African gold producers, AngloGold Ashanti, Gold Fields, DRDGold and Sibanye-Stillwater, all increased by over 200% in the last 10 months.

And then the gold price fell from its high of above $4 350 (R75 473) per ounce to barely above $4 000 over the past few days.

Gold shares immediately gave up a bit of their gains.

AngloGold Ashanti, Gold Fields and Harmony fell around 7% over the last week or so, and Sibanye-Stillwater by 11%.

Where does this leave investors? Does this offer an opportunity, or is it time to get out and cash in the huge profits while they're still on the table?

Joseph Cavatoni, senior market strategist at the World Gold Council, says the bull market for gold is still strong.

"Gold has made 45 new records high this far in 2025," he said in a radio broadcast aired recently.

"I wake up every morning and the gold price is a couple of dollars higher. We cannot blame the Chinese, they are on holiday. It is Western investors buying," he says, noting that exchange traded funds (ETFs) were net buyers of gold in September 2025 to the tune of 240 tonnes.

Cavatoni says recent conversations with asset managers in the US and the UK revealed that fund managers are reducing exposure to government bonds in favour of gold.

"The 60/40 split between equities and bonds are being replaced by a 60/20/20 split by adding gold exposure.

"It makes sense. We have been arguing for years that the negative correlation between bonds and equities should not be taken for granted."

While the strong rally in the gold price eased this week, it is still more than double what it was a year ago.

'Quietly booming'