Gold Prices Slashed Across SA! Govt’s New Investment Policy Brings Golden Relief – Check Your City

SA Gold Price Drop :  The South African government has unveiled a new policy aimed at encouraging local gold investment, resulting in a significant drop in gold prices across the country. This move is expected to bring relief to both consumers and small investors who have long struggled with rising gold rates. If you’ve been waiting for the right time to invest in gold, this could be your golden opportunity.

The initiative is part of the government’s broader economic recovery plan to increase domestic asset ownership and stabilize the bullion market. Here’s everything you need to know about the new policy, the reduced gold prices, and how it affects your city.

New Policy Behind the Price Drop

The Department of Mineral Resources and Energy (DMRE), in collaboration with the National Treasury, has launched a gold price adjustment scheme to:

• Stimulate gold investment by the general public.
• Counter the impact of international price volatility.
• Strengthen the South African Rand through increased local gold holdings.

Key highlights of the new policy:

• Reduction in local gold taxation for small investors.
• Introduction of zero import duty on raw gold for certified jewellers.
• Subsidies for gold-saving schemes under government-linked investment programs.
• Enhanced storage and safety measures for personal gold holdings.

The price slash has already come into effect and is being reflected in retail prices in major cities.

City-Wise Gold Price Drop Comparison

Here’s a table showing the new gold prices (per gram) in major South African cities after the policy implementation:

City	Old Price (R/gram)	New Price (R/gram)	Price Difference (R)
Johannesburg	R1,150	R1,020	R130
Cape Town	R1,170	R1,040	R130
Durban	R1,160	R1,030	R130
Pretoria	R1,155	R1,025	R130
Port Elizabeth	R1,165	R1,035	R130
Bloemfontein	R1,150	R1,020	R130
East London	R1,160	R1,030	R130
Polokwane	R1,155	R1,025	R130

These price cuts are valid across registered and government-authorized gold vendors.

How Consumers Benefit from the Price Drop

Whether you’re a buyer or an investor, the reduced gold prices come with several advantages:

• Affordable Jewellery Purchases: Lower costs for bridal and ceremonial jewellery.
• Investment Opportunity: Small-scale investors can now enter the gold market with reduced entry costs.
• Gold Loan Leverage: Easier access to gold-backed loans due to improved affordability.
• Gold Savings Plans: Increased uptake in government-backed gold investment plans.

Additionally, the new policy will benefit small businesses in the jewellery and ornament-making sectors.

Eligibility and Conditions for Gold Investment Subsidy

If you’re planning to invest in gold under this new scheme, take note of these conditions:

• Must be a South African citizen or permanent resident.
• Valid South African ID is required.
• Investment must be made via government-approved schemes or certified dealers.
• Minimum investment value: R5,000.
• Maximum eligible subsidy per individual: R25,000 per year.

This scheme particularly targets middle-income individuals and aims to improve household asset portfolios.

Frequently Asked Questions (FAQs)

Q1. Where can I buy gold at the new rates?
A: Only government-registered dealers and jewellery stores are authorized to sell at the updated prices.

Q2. How long will this gold price reduction last?
A: The reduction is part of a 12-month pilot scheme but could be extended based on performance.

Q3. Can I invest online in these gold schemes?
A: Yes, through platforms approved by the National Treasury and South African Reserve Bank.

Q4. Is this offer available for NRIs or foreign investors?
A: No, it is currently available only to South African citizens and residents.

Q5. Can I sell previously owned gold at these new prices?
A: No, the new prices apply only to fresh gold purchases under the scheme.

Departmental Contact Details

For more information, queries or complaints, contact the relevant departments below:

Department of Mineral Resources and Energy (DMRE)

• Phone: 012 444 3000
• Email: [email protected]
• Website: www.dmre.gov.za

National Treasury – Investment Policy Queries

• Phone: 012 315 5111
• Email: [email protected]
• Website: www.treasury.gov.za

South African Reserve Bank – Gold Regulation Division

• Phone: 0800 222 287
• Email: [email protected]
• Website: www.resbank.co.za

Impact on the Jewellery Market

Local jewellers are welcoming the policy, with many reporting increased foot traffic and early bookings for weddings. The reduced pricing is also expected to reduce illegal gold trading and smuggling by improving legal supply chain affordability.

Steps to Buy Gold Safely Under This Scheme

• Visit a government-approved vendor or jewellery showroom.
• Check for certification and gold purity markings (24k, 22k, etc.).
• Ask for a GST-compliant invoice showing new rates.
• Consider starting a gold savings scheme for regular monthly investment.

Who Should Consider Investing Now?

• First-time investors looking for low-risk returns.
• Households planning future expenses like weddings or education.
• People interested in diversifying their assets beyond real estate and shares.

With gold prices slashed across South Africa due to a game-changing policy shift, this is an ideal time for citizens to consider investing. The move is not only a financial opportunity but also a strategic step by the government to bolster domestic investment and stabilize the economy. Whether you’re planning to purchase gold for personal use or wealth accumulation, now is the time to act.