We can now add another metal to this story. Platinum was slower than gold to start its run, but it has come to the party with a stronger 2025 than its yellow relative. Platinum started the year at $930 per ounce and recently exceeded $1 680.
The relevant 1nvest products have followed suit. Our 1nvest Gold ETF has given investors 46.38% so far this year, and the 1nvest Platinum ETF has returned 70.04% since the start of 2025.
2025 year-to-date performance of the 1nvest Platinum ETF (black line) and the 1nvest Gold ETF (blue line)
Source: Bloomberg
If your portfolio has been buoyant despite the sustained storm of global and local volatility, it may be in part thanks to these metals showing their mettle. In 2025, gold and platinum have quietly outperformed almost every major asset class.
In its element
Gold has reminded everyone why it’s called precious. In addition to its industrial uses and enduring demand in the form of jewellery, gold performs the role of safe haven. When volatility strikes, investors like to have gold. It can, for example, offset a declining equity market. Although in current settings, South African equities have thrived alongside gold.
Multiple forces are driving gold’s good run. Consider just two important ones. First, geopolitical nerves are elevated. From trade tensions to international conflict, heightened uncertainty has many investors favouring relatively safe harbours.
Second, central banks are stockpiling gold. Reuters reports that central banks’ annual net gold purchases since 2022 have been more than double the average of the previous five years.
Add it all up, and you get one of gold’s best years in two decades. In rand terms, it’s even more impressive – the ZAR/USD rate amplifies those dollar gains, turning global headlines into local returns.
Powering platinum
While gold sometimes holds the limelight, platinum has been quietly stealing the show. Gold’s so-called “industrial cousin” has more practical use – including in catalytic converters, hydrogen fuel cells, and other high-tech kits – and joined the party later than gold. But as an investment, it has outshone even the excellent performance of gold this year.
What is behind the surge? Going back to basics, supply and demand dynamics are at play. The global platinum market is in deficit – supply just can’t keep up with demand. It is expensive and difficult to start new platinum mines or ramp up output at existing ones. Part of this is a local issue. South Africa typically accounts for around three-quarters of global platinum output, but infrastructure failings and power shortages are barriers to production. This, while demand rises on the back of platinum’s role in clean energy technology.
Why it matters for South Africans
All of this has particular relevance to South African investors. Consider three reasons for this:
What next?
Just like staring into a crystal ball doesn’t really tell us the future, gazing at gold and perusing platinum offers no guarantees of what is to come. Of course, that uncertainty is part of the appeal of precious metals as assets.
Additionally, there are major voices with positive views on the prospects for gold. Bank of America recently lifted its 2026 forecast to US$5,000/oz, citing “persistently high geopolitical demand.” Goldman Sachs is not far off with an eye on US$4,900/oz by December 2026, highlighting strong demand from both ETF buyers and central banks.
As always, it’s worth returning to first principles. Spending time in the market with a carefully constructed portfolio that fits your particular needs and goals remains a sound recipe for success. Our exchange-traded funds (ETFs) are designed for just this purpose. Holding gold or platinum with an ETF gives you a stake in the physical asset housed in a secure vault. You also have plenty of freedom to buy or sell as needed, all at a minimal cost and with high transparency.
Learn more about all of our commodity ETFs, including the 1nvest Platinum ETF and 1nvest Gold ETF, here.
Collective Investment Schemes (CIS) are generally medium- to long-term investments. The value of participatory interests may go down as well as up. Past performance is not necessarily a guide to future performance. CIS are traded at ruling prices and can engage in borrowing and scrip lending. A schedule of fees and maximum commissions is available on request from the manager. The manager does not provide any guarantee with respect to the capital or the return of a CIS portfolio. These portfolios are third-party-named incubator portfolios. The manager retains full legal responsibility for these portfolios.
1nvest Fund Managers (Pty) Ltd is an authorised financial services provider (FSP), FSP No. 49955, under the Financial Advisory and Intermediary Services Act (FAIS), Act No. 37 of 2002. The manager of the Schemes is STANLIB Collective Investments (RF) Pty Ltd and registered in terms of CISCA. For the basis and information on awards and rankings, please contact [email protected].
