Latest news with #AzarJammine
IOL News
12-06-2025
- Business
- IOL News
South Africa's gold legacy: The psychological impact of rising gold prices
Despite losing its title as the world's gold capital, South Africa continues to benefit from the rising popularity of gold as a safe haven, with implications for the local economy and currency Image: Ai Despite having lost its crown as the gold capital of the world, South Africa is still indirectly – and psychologically – benefitting from the yellow metal's gain in popularity as a safe haven. As of 12.30pm on Tuesday afternoon, the precious metal was rising towards $3,340 an ounce, although off its $3 500 record high in April, it is still 'holding up,' as Dr Azar Jammine, director and chief economist at Econometrix, said. Gold is 'holding up' as its underlying value is a hedge against economic uncertainty, said Jammine. Speaking with IOL, Jammine noted that gold is still benefiting both the local currency, as well as gold miners. The rand is still flirting around the R17.70 to the dollar level and could drop into the R16 to R16.99 range, according to Old Mutual chief economist, Johann Els. Gold has a long history in South Africa, which was once the world's biggest gold miner, losing that crown to China in 2006. The fact that it is no longer even in the top ten is, as Jammine said, 'very sad'. Gold's history in South Africa dates back to the late 1800s, when a rush saw an effective shanty town developed in what is now Johannesburg. Pilgrims Rest and Barberton are historical sites for mining, with tourists still being able to pan for alluvial gold in Pilgrims Rest in Mpumalanga's Drakensburg area. South Africa cannot claim to be gold's oldest source though, as the Royal Mint said that gold was first smelted in Egypt in 3 600 BC. The metal's history includes the first gold coins being struck in what was then Lydia, Asia Minor, in 600 BC. The Minerals Council of South Africa notes on its website that, even though the Witwatersrand Basin remains the world's largest gold resource, more than half of the South African gold mining industry is 'marginal'. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The discovery of gold in South Africa in the late 19th century led to the development of Johannesburg, also known as Egoli or the City of Gold, as well as numerous towns near the gold diggings, such as Barberton and Pilgrim's Rest, the Council stated. In the 20th century, significant gold mines were established on the West Wits line, and towns like Carletonville and Klerksdorp became vital centres around the renowned gold mines, it added. However, the Council said that the prominence of the gold sector began to decline in the early 21st century as mining operations reached deeper levels to access rich reef patches. At the same time, the gold price experienced a substantial decrease from its previous highs, and the global economy encountered challenges, culminating in the 2008 financial crisis. 'Although the crisis has eased in many countries, the effects on the South African mining industry have been profound and enduring,' it noted. Joburg's oldest working mine, incidentally, is at Gold Reef City. Jammine said that South Africa is benefitting from the safe haven appeal of the yellow metal mentally. The price has a psychological value on shares and the currency, said Jammine. He added that the perception is that South Africa is still a major gold producer and, as people think South Africa will have a large benefit from the metal, there is a psychological advantage for the rand and gold mining shares. IOL
IOL News
11-06-2025
- Business
- IOL News
Proceeds from a 5-year R1,000 investment in FirstRand shares is now worth 25% of groceries
IOL's calculations show that, without reinvesting dividends, your shares would be worth about R1 785. Image: Ai If you invested R1 000 in FirstRand shares five years ago and reinvested all dividends (excluding the effects of inflation), your investment would now be worth about R2 378. This includes both share price appreciation and the compounding effect of reinvested dividends. That gain, of R1 378, is the equivalent of a quarter of the cost of an average food basket, based on May figures from the Household Affordability Index, published by the Pietermaritzburg Economic Justice & Dignity Group. The Group's report indicated that the national minimum wage in May, based on 21 working days, is R4 836. The average cost of a household food basket, in the same month, is R5 466. The Pietermaritzburg Economic Justice & Dignity Group's food basket tracks 44 basic food items, including a range of essentials like maize meal, potatoes, tomatoes, bananas, and various other fruits and vegetables, as well as staples like bread and milk. IOL's calculations show that, without reinvesting dividends, your shares would be worth about R1 785. Overall, dividends earned and reinvested over the period contributed an additional R593 to your investment value. This calculation is based on a five-year share price increase of about 78.7% and an average annual dividend yield of roughly 5.9%, with dividends reinvested each year. In contrast, the JSE's All Share Index has climbed some 81% over the same period. Dr Azar Jammine, director and chief economist at Econometrix, pointed out to IOL that the Index was worth some 7 000 points at the turn of the century and is now heading towards 100 000. FirstRand started out as FNB, which claims to be South Africa's oldest bank. Its history can be traced back to the Eastern Province Bank formed in Grahamstown in 1838. Initially the Eastern Province Bank, FNB was established in Grahamstown and initially focused on financing the wool export boom in the district. It later hit a wobble and was acquired by the Oriental Bank Corporation in 1874, which was later bought out by the Bank of Africa in 1879. IOL
eNCA
30-04-2025
- Business
- eNCA
Economist unpacks possibilities for Budget 3.0 on 21 May
PARLIAMENT - The finance minister is ignoring calls to resign, as he prepares to table his third budget on 21 May. READ: Unpacking the political perspectives on Budget 3.0 This comes after the Western Cape High Court set aside Parliament's adoption of the 2025 Fiscal Framework. Enoch Godongwana announced on Wednesday that he will present a revised national budget on 21 May, 2025. Director and Chief Economist at Econometrix Dr Azar Jammine spoke with eNCA about the budget's third iteration.
