Gold and silver versus the JSE Top 40 and S&P 500 in 2025

In 2025, gold and silver became popular among investors to safeguard them during uncertainty, helping the two metals perform well compared to the JSE Top 40 and the S&P 500.

This year has delivered numerous disruptive events, including US President Donald Trump’s tariffs and conflicts involving Iran, Israel, Russia, Ukraine, and the United States.

The poor performance of the US Dollar has also sparked concerns among investors that the world’s reserve currency may lose its lustre.

The increased geopolitical tension, trade war escalation, stock market volatility, and macroeconomic uncertainty have seen safe-haven demand surge.

Many central banks, particularly in emerging markets, have been buying gold to diversify reserves away from the US dollar.

Retail investors have also been piling into gold. The World Gold Council said ETF and retail inflows surged in recent months.

It said a sharp revival in gold ETF inflows fuelled a more-than-doubling of total investment demand, and bar and coin demand remained elevated.

The price of gold has risen from R 43,700 per ounce in July 2024 to R62,200 per ounce in July 2025, a 42% increase over the 12 months.

Silver has had an equally strong performance. The metal has gained over 25% in the first half of 2025, hitting around $35 to $38 per ounce.

Apart from investors viewing silver as a safe haven during uncertainty, similar to gold, there has also been a global supply deficit.

For seven years, the silver supply has not kept pace with demand. Mine production remained flat while demand rose from the solar, EV, and electronics sectors.

Sprott reported that freely traded silver inventories have been diminished and that the metal may be poised for sharp upside on even modest demand spikes.

Another interesting observation is that the gold‑silver price ratio soared to 100:1, well above the historical average of 67 to 80.

Many experts viewed that as an indication that silver is undervalued and that it has the potential to increase significantly in price.

Gold and silver versus the JSE Top 40 and S&P 500

Both the JSE and S&P 500 hit record highs this year. Last week, the JSE All Share Index (ALSI) broke through 100,000 points for the first time.

The JSE top 40 outperformed the S&P 500 in the year to date in rand terms, delivering a 20.8% return in 2025.

In comparison, the S&P 500 only delivered 3.33% in rand terms as the rand appreciated over the year-to-date.

The JSE Top 40 refers to the 40 biggest companies on the JSE by market capitalisation. It includes big international companies like BHP, Richemont, Prosus, and BAT.

The S&P 500, or Standard & Poor’s 500 Index, is a market-capitalisation-weighted index of 500 leading publicly traded companies in the United States.

Two other assets that performed very well in 2025 were silver and gold. In rand terms, gold performed almost as well as the JSE Top 40 index, delivering a return of 20.1%.

Silver had a particularly strong year so far, outperforming both the JSE Top 40 Index, the S&P 500, and gold. It delivered a return of 23.5% in 2025 YTD.