The LBMA (London Bullion Market Association) is an international trade association representing the London gold and silver Bullion market with a global client base. This includes most gold-holding central banks, private sector investors, mining companies, producers, refiners, and fabricators. By advancing standards and developing market solutions, the LBMA aims to ensure the highest leadership, integrity, and transparency levels for the global precious metals industry.

The LBMA/LPPM Global Precious Metals Conference was held in Miami, USA and ended Tuesday, October 15 2024. Delegates to this annual gathering predicted on Tuesday that the price of Gold is expected to rise to $2 941 a troy ounce over the next 12 months. Spot gold prices are up 29% so far this year, heading for the biggest annual gain in 14 years, amid the start of US Federal Reserve interest rate cuts and geopolitical tensions. The spot price hit a record from this week with a new all-time high above $2,700.

The South African market is reacting to these global economic trends. Rael Demby, CEO of The South African Gold Coin Exchange & The Scoin Shop, echoed these sentiments, noting that the recent spike in gold prices highlights the increasing appeal of Gold as a safe-haven asset. "We are seeing a significant demand increase for Krugerrands and other gold coins. The trend reflects a growing recognition among South Africans of the need to hedge against currency volatility and inflation," Demby commented.

Although some commentators remain sceptical, citing the possibility of short-term fluctuations, the long-term appeal of Gold as a safe-haven asset persists. Demby advises that portfolios are well diversified, with Gold and silver forming a significant part of the asset mix to guard against potential economic upheavals. As the world navigates these uncertain financial waters, Gold stands out as a time-tested asset that has retained its value through various economic cycles, making it a vital consideration for investors looking to safeguard their wealth.

Demby concludes, "Gold has always been a hedge against inflation and economic turmoil. Given the global signs, it's not just a safety net anymore; it's a necessity."

Watch the interview with CNBC AFRICA here