dollar gains have been reflected in almost every currency in the world. The top ten gold-producing countries in 2025 are China, Russia, Australia, Canada, the US, Ghana, Peru, South Africa, Indonesia and Uzbekistan. “At the beginning of 2025 gold mining companies made healthy margins producing as much gold as they could. However, further increases in the price of gold will have little effect on production as gold miners are finding it increasingly difficult to boost production given that new deposits are hard to discover, costly to prove, and slow to permit and develop. As a result, the industry has faced challenges scaling up at pace to fully capitalise on today’s high prices.” Although Reade expects slim growth in mine production this year, he admits that mine production could increase slightly by about two or three percent and “might even break the previous, annual record we saw in 2018”. The broader picture, though, is one of static mine production. Given that the pipeline of new projects is scarce, with the gold mining industry struggling to grow production meaningfully, miners are evaluating reactivating old mines that have become
of gold in 2026, explaining that the prospects for gold in 2026 are good “because most of the drivers that have helped gold this year will continue. “The factors that have encouraged investors and central banks to purchase gold will continue; however, I don’t expect the price of gold to increase as much in 2026 as it did in 2025. We do recognise that there will likely be more corrections next year than experienced in this one.” Gold’s performance in 2025 In 2025, the markets noted steady central bank buying, “maybe a little bit weaker than 2024, but still quite strong”. On the flip side though, the robust gold price has led to weaker jewellery demand. “Jewellery demand has fallen because the price of gold is high - the amount of money spent on jewellery has increased though and remains healthy. Further to this, we have seen a huge increase in investment demand, particularly from ETF holders,” Reade continues. As expected, gold producers and countries with significant quantities of the precious metal have benefited substantially from the higher prices. US
viable because of high gold prices. With gold recycling supply also being slower than expected the amount of gold available to the market remains largely unchanged. “The only way that investors can get more gold is by pricing out the jewellery sector, which we note is already purchasing less gold.” On a more positive note, the higher gold price has paved the way for increased availability of funding for smaller gold and exploration companies seeking new gold finds. According to Reade, over the recent past, several Canadian mining companies looking to invest in gold projects, have received funding to advance their projects up the value curve. “Exploration and development companies are certainly finding it easier to access funds. However, even if there are gold finds, they are unlikely to lead to increased production in the near term, given the long lead times from proving up a resource to mine development and production, which often takes between five years and a decade.” Impact of high gold price on other precious metals Interestingly, the robust demand for gold has positively impacted demand for other precious metals such as platinum group metals (PGMs) and silver. Higher gold prices have prompted consumers to favour PGMs and silver. The Indian market is seeing robust silver jewellery demand and, in China, the platinum jewellery segment is recovering as platinum continues to offer a cost- effective alternative to gold. “All the precious metals prices have performed well this year, because when gold goes up, it tends to drag the other precious metals with it.” With heightened investor interest in the commodity, experts in the field have ‘never been busier’. “We continue to meet with both existing and prospective investors who are eager to gain exposure to the market. The sustained strength of gold over the past few decades is now firmly entering the financial mainstream. It is no longer viewed as a niche asset reserved for specialists or banks; the message is clear: gold is a sound asset class that can enhance portfolios in both stable periods and times of crisis.” n
Higher gold prices have prompted consumers to favour PGMs and silver.
Gold, a safe-haven investment, outpaced all other stocks in 2025.
February 2026 | www.modernminingmagazine.co.za MODERN MINING 15
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