Let’s talk Gold!
Many of our Botswana-based clients have highlighted the recent surge in Gold prices
The Gold price has doubled since early 2024 and is now above US$4,100/oz. We’ve heard forecasts pointing to US$4,900/oz by 2026. This surge is driven by:
- ETF inflows of over US64 Billion in the first 9 months of 2025
- Countries like China & Russia replacing US dollar reserves with gold.
- Gold reclaiming its role as a safe-haven asset as a result of inflation fears and global uncertainty.
Many of our investors have been pushing for more exposure to Gold given the rise in prices and return for those already invested.
What does this mean for the Botswana Investor?
- You may consider gold ETFs for easy, liquid exposure. They’re ideal for retail investors seeking inflation protection or portfolio diversification.
- If your portfolio is heavily weighted toward local equities or bonds, now may be the time to rebalance. Gold can act as a stabilizer during volatile periods.
- Watch the pula-dollar dynamics: As gold prices rise and the US dollar faces pressure, currency movements could impact Botswana-based returns. Stay informed and hedge where necessary
HOWEVER, also have this in mind;
- Gold prices are highly sensitive to global events, interest rates, and investor sentiment. The same forces that drive prices up can reverse quickly. A sharp correction could impact short-term returns, especially for investors who enter at peak levels
- Unlike bonds or dividend-paying stocks, gold doesn’t produce income. Investors rely solely on price appreciation. This makes gold less attractive for retirees or income-focused portfolios unless paired with other yield-generating assets
- Central bank actions, geopolitical tensions, or speculative trading can distort gold prices. These factors are hard to predict and can introduce unexpected risk
So for the Botswana Investor, I encourage you to;
- By all means diversify, don’t go all-in on gold. Use it as a hedge within a broader portfolio.
- Use ETFs or regulated investment platforms: These offer better liquidity and transparency than physical gold.
- Set clear entry and exit strategies: Avoid emotional trading based on headlines.
- Consult a financial advisor: Tailor your gold exposure to your risk tolerance and goals.
#BotswanaInvesting #GoldSurge #ETFs #PortfolioStrategy #InflationHedge #InvestmentAdvisory #FinancialPlanning
Author: Munotida Joanna Nyabadza