- What are the most promising commodities in 2025?
- Which commodities to choose according to the investor profile?
- How to buy commodities in South Africa?
- Our 5 tips before buying commodities
- FAQ
- On the same topic
The commodities market in 2025 is evolving quickly, driven by global economic shifts, policy updates, and technological advances. Last year brought significant movements across key sectors, with volatility in metals, energy, and agriculture shaping investor decisions. As a result, many are looking to identify the most promising opportunities this year. This page provides an overview of the leading commodities, using criteria like historical performance, market capitalization, growth prospects, volatility, and sector dynamics. The guide is designed to help both beginners and experienced investors make informed choices.
Attention!
The information provided on this page is for informational purposes only and is not intended as investment advice. Before making any investment in commodities, you should conduct your own research, carefully assess the risks involved, and act with caution. Please ensure you are aware of and comply with all applicable South African regulations.
What are the most promising commodities in 2025?
The commodities market in 2025 is rapidly evolving, shaped by economic policy shifts, global supply chain dynamics, and South Africa’s own resource strengths. Precious metals, industrial inputs, energy resources, and agricultural staples have each experienced periods of volatility and resilience, sparking widespread interest among investors looking to capture growth or hedge risk. This overview highlights the ten most promising commodities assets based on supply-demand dynamics, liquidity, storage complexity, volatility, and international outlook—focusing on those that align with current market needs and local significance.
| Commodity | Supply & Demand | Liquidity | Storage | Volatility | Price Trend 2025 |
|---|---|---|---|---|---|
| Gold | High | High | Easy | Moderate | Upward |
| Platinum | Moderate | Moderate | Easy | Mod-High | Upward |
| Palladium | Moderate | Moderate | Easy | High | Upward |
| Copper | Moderate | High | Intermediate | High | Upward |
| Coal | Moderate | High | Difficult | High | Downward |
| Crude Oil | High | High | Difficult | High | Upward |
| Natural Gas | High | Moderate | Difficult | High | Upward |
| Iron Ore | High | High | Difficult | Moderate | Upward |
| Soybeans | High | High | Perishable | Moderate | Upward |
| Wheat | High | High | Perishable | Moderate | Upward |
Gold
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $1,950/oz (July 2025) | Sets benchmark for reference and valuation. |
| 📉 End-of-year Forecast | $2,000–$2,100/oz | Indicates expert consensus and sentiment. |
| 🎯 Investor Type | Institutional, Individual, Diversifiers | Shows suitability for various profiles. |
| 🧮 Market Capitalization | Very High | Reflects depth and relative safety in investments. |
| 🔁 Liquidity | High | Allows for ease of trading and adjusting positions. |
| 📊 6-Month Evolution | +5% | Reveals short-term momentum and interest. |
| 📈 1-Year Performance | +10% | Highlights robustness over medium terms. |
| 📅 5-Year Performance | +30% | Captures resilience and growth over cycles. |
| 📆 10-Year Performance | +50% | Identifies long-term store of value characteristics. |
| ⚡ Highest Price (10y) | $2,075/oz | Showcases potential upside. |
| 💧 Lowest Price (10y) | $1,050/oz | Offers context on historic downside risk. |
Gold stands out in 2025 as a global safe haven, benefitting from times of economic and political uncertainty. Its high liquidity and deep market enable large and small investors to hedge portfolios against currency risks and inflation.
South Africa remains a leading gold producer, making its local mining sector highly sensitive to gold price movements. As global uncertainty remains elevated, the long-term performance and portfolio stability offered by gold keep it a focal point for watchful investors.
Platinum
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $1,000/oz (July 2025) | Key for entry valuation and price comparison. |
| 📉 End-of-year Forecast | $1,050–$1,200/oz | Projects anticipated market range. |
| 🎯 Investor Type | Industry, Institutional, Long-term Holders | Indicates targeted demand and user profile. |
| 🧮 Market Capitalization | Moderate | Reveals size and influence in the market. |
| 🔁 Liquidity | Moderate | Impacts ease of market entry and exit. |
| 📊 6-Month Evolution | +3% | Demonstrates recent market activity. |
| 📈 1-Year Performance | +8% | Shows strength and current investor confidence. |
| 📅 5-Year Performance | +20% | Reflects cyclical demand, especially from auto sector. |
| 📆 10-Year Performance | +40% | Suggests value appreciation over longer periods. |
| ⚡ Highest Price (10y) | $1,200/oz | Helps set realistic price targets. |
| 💧 Lowest Price (10y) | $750/oz | Shows risk of downside moves. |
As the world’s leading platinum producer, South Africa’s economy is closely tied to this metal. Platinum has critical uses in automotive catalytic converters and the hydrogen economy.
In 2025, factors such as automotive demand, clean-energy transition, and local production capacity position platinum as a commodity with solid industrial and strategic value.
Palladium
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $2,400/oz | A key gauge for market entry and trade size. |
| 📉 End-of-year Forecast | $2,500–$2,800/oz | Frames potential expected market movement. |
| 🎯 Investor Type | Industry, Short-Term, Speculators | Points to typical user groups and volatility. |
| 🧮 Market Capitalization | Moderate | Sheds light on turnover and industry impact. |
| 🔁 Liquidity | Moderate | Informs about trade volumes and position agility. |
| 📊 6-Month Evolution | +7% | Signals strong recent demand. |
| 📈 1-Year Performance | +15% | Reflects outperformance period. |
| 📅 5-Year Performance | +60% | Highlights cycle of strong industrial uptake. |
| 📆 10-Year Performance | +120% | Indicates long-term price appreciation. |
| ⚡ Highest Price (10y) | $3,000/oz | Context for attainable price extremes. |
| 💧 Lowest Price (10y) | $500/oz | Historic risk consideration for investor awareness. |
Palladium is pivotal in auto emission control tech, where rising global environmental standards keep demand buoyant. Its volatile pricing also attracts speculative interest.
South African supply is substantial, ensuring the nation’s role in global palladium flows. Tight supply and growing regulation make it an asset of sustained interest through 2025.
Copper
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $4.50/lb (July 2025) | Sets transaction baseline. |
| 📉 End-of-year Forecast | $4.80–$5.00/lb | Informs planning and growth assumptions. |
| 🎯 Investor Type | Industrial, Green Energy, Long-term | Highlights relevance for global mega-trends. |
| 🧮 Market Capitalization | High | Shows copper’s market scale and essential role. |
| 🔁 Liquidity | High | Means plenty of active buyers and sellers. |
| 📊 6-Month Evolution | +2% | Identifies short-term shifts in demand. |
| 📈 1-Year Performance | +5% | Reveals medium-term stability and potential. |
| 📅 5-Year Performance | +25% | Ties directly to electric vehicle and infrastructure. |
| 📆 10-Year Performance | +70% | Indicates copper’s critical role in long-term trends. |
| ⚡ Highest Price (10y) | $5.00/lb | Optimistic target for bullish scenarios. |
| 💧 Lowest Price (10y) | $2.00/lb | Downside baseline for risk management. |
Copper remains integral to South Africa’s mining base and is vital to technological progress globally, especially in renewables and electrification.
Increasing demand from EVs, smart grids, and infrastructure modernisation sustain copper’s high visibility in 2025 for both local and international market participants.
Coal
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $150/ton (July 2025) | Entry value reference for traders and producers. |
| 📉 End-of-year Forecast | $120–$170/ton | Offers likely trading range projections. |
| 🎯 Investor Type | Industry, Utilities, Exporters | Reveals user demand and sector exposure. |
| 🧮 Market Capitalization | High | Indicates enduring relevance despite global trends. |
| 🔁 Liquidity | High | Underlines market fluidity, especially in ZA export. |
| 📊 6-Month Evolution | -5% | Denotes recent downtrends due to global energy shifts. |
| 📈 1-Year Performance | -10% | Emphasises transition risks and price pressure. |
| 📅 5-Year Performance | -15% | Shows structural decline amid decarbonisation. |
| 📆 10-Year Performance | -30% | Reflects long-term global headwinds. |
| ⚡ Highest Price (10y) | $200/ton | Contextualises cyclical highs for strategic planning. |
| 💧 Lowest Price (10y) | $50/ton | Indicates operational risk during sector troughs. |
Coal remains a backbone for South African power generation despite global decarbonisation. Its local and export importance is challenged by environmental policy, depressuring long-term prices.
Short-term volatility is influenced by weather, logistics, and international demand, but long-term prospects remain pressured by the shift to renewables.
Crude Oil
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $85/barrel (July 2025) | Establishes pricing for contracts and hedging. |
| 📉 End-of-year Forecast | $90–$100/barrel | Guides planning and portfolio risk assessment. |
| 🎯 Investor Type | Refineries, Institutional, Traders | Indicates key market participants. |
| 🧮 Market Capitalization | Very High | Suggests scale and flexibility of the asset. |
| 🔁 Liquidity | High | Ensures tight bid/ask spreads and rapid trading. |
| 📊 6-Month Evolution | +10% | Captures recent global demand recovery. |
| 📈 1-Year Performance | +20% | Demonstrates strength in cyclical rebound. |
| 📅 5-Year Performance | +50% | Shows significance in long-term commodity cycles. |
| 📆 10-Year Performance | +80% | Ties to global economic expansion cycles. |
| ⚡ Highest Price (10y) | $100/barrel | Indicates boom scenarios and supply shocks. |
| 💧 Lowest Price (10y) | $30/barrel | Frames significant downside periods. |
Oil remains crucial to global and regional economies, closely tracking supply chain, geopolitical, and policy changes.
With energy demand rebounding post-pandemic and supply constraints likely, oil enters 2025 with robust growth prospects amid volatility, making it a key commodity for analysts and businesses.
Natural Gas
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $3.50/mmbtu (July 2025) | Pricing reference for long and short trading. |
| 📉 End-of-year Forecast | $4.00–$5.00/mmbtu | Estimates market expectations for coming months. |
| 🎯 Investor Type | Energy Utilities, Industrial, Hedgers | Identifies key commercial stakeholders. |
| 🧮 Market Capitalization | High | Supports diversified liquidity and wide participation. |
| 🔁 Liquidity | Moderate | Affects trade execution speed and costs. |
| 📊 6-Month Evolution | +12% | Underscores accelerating demand trends. |
| 📈 1-Year Performance | +25% | Highlights outperformance in current context. |
| 📅 5-Year Performance | +40% | Indicates resilience through industry cycles. |
| 📆 10-Year Performance | +60% | Reflects energy transition’s role in price formation. |
| ⚡ Highest Price (10y) | $5.00/mmbtu | Potential for price spikes in adverse supply events. |
| 💧 Lowest Price (10y) | $2.00/mmbtu | Points to historic downside risk and seasonality. |
Natural gas is pivotal in South Africa’s anticipated energy mix shift, as it supports both reliability and reduced carbon load.
Seen as a ‘bridge fuel,’ it attracts ongoing infrastructure investments. Supply-and-demand shifts—both local and global—drive regular volatility, opening opportunities for active market participants.
Iron Ore
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $120/ton (July 2025) | Key benchmark for contract and export. |
| 📉 End-of-year Forecast | $130–$150/ton | Provides end-of-period valuation framework. |
| 🎯 Investor Type | Mining, Infrastructure, Exporters | Outlines sectors with the highest exposure. |
| 🧮 Market Capitalization | High | Quantifies importance for economy and sector. |
| 🔁 Liquidity | High | Facilitates trade certainty and competitive pricing. |
| 📊 6-Month Evolution | +8% | Reveals near-term growth momentum. |
| 📈 1-Year Performance | +18% | Highlights sector strength amid infrastructure spend. |
| 📅 5-Year Performance | +35% | Evidence of resilience to market shocks. |
| 📆 10-Year Performance | +55% | Demonstrates robust long-term participation. |
| ⚡ Highest Price (10y) | $150/ton | Offers scope for bullish phase targets. |
| 💧 Lowest Price (10y) | $40/ton | Context for risk, loss-minimisation strategies. |
Iron ore underpins South Africa’s resource export and infrastructure sectors. Demand from major economies and domestic building projects remains strong.
Long-term industrialisation trends and commodity cycles support ongoing relevance, with volatility set by global steel and construction needs.
Soybeans
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $14/bushel (July 2025) | Acts as the primary valuation point. |
| 📉 End-of-year Forecast | $14–$16/bushel | Signals where analysts expect the market to head. |
| 🎯 Investor Type | Farmers, Food Industry, Exporters | Identifies who stands to gain or lose. |
| 🧮 Market Capitalization | High | Suggests liquid, widely-traded nature. |
| 🔁 Liquidity | High | Facilitates pricing efficiency and risk management. |
| 📊 6-Month Evolution | +6% | Indicates supply/demand tightness. |
| 📈 1-Year Performance | +12% | Reflects uptick in global biofuel and feed demand. |
| 📅 5-Year Performance | +28% | Captures impact from agri-tech and climate variability. |
| 📆 10-Year Performance | +45% | Demonstrates positive returns over extended periods. |
| ⚡ Highest Price (10y) | $16/bushel | Reference for profit-taking and volatility. |
| 💧 Lowest Price (10y) | $8/bushel | Used for risk planning and cost benchmarking. |
Soybeans’ role in global food security, animal feed, and biofuel growth keeps them centre stage in 2025. South Africa’s agricultural sector benefits from both local production and export opportunities.
Climate patterns and evolving demand make soybeans a watchlist staple for commodity followers and food industry participants alike.
Wheat
| Criterion | Description | Why it matters |
|---|---|---|
| 🏷️ Current Price | $7/bushel (July 2025) | Essential food pricing baseline for many economies. |
| 📉 End-of-year Forecast | $7–$9/bushel | Provides sense of pricing risk and upside. |
| 🎯 Investor Type | Farmers, Food Industry, Exporters | Identifies value chain participants. |
| 🧮 Market Capitalization | High | Promotes liquidity and market access. |
| 🔁 Liquidity | High | Enables stable trade and hedging. |
| 📊 6-Month Evolution | +4% | Highlights recent growing season’s impact. |
| 📈 1-Year Performance | +9% | Demonstrates shift in food commodity demand. |
| 📅 5-Year Performance | +22% | Shows longer-term supply stress and price response. |
| 📆 10-Year Performance | +38% | Reflects food inflation and supply chain resilience. |
| ⚡ Highest Price (10y) | $9/bushel | Informs expectations for bumper seasons. |
| 💧 Lowest Price (10y) | $4/bushel | Context for drought or glut-induced downturns. |
Wheat stands as a foundation of global food production and security. Price dynamics trace weather shocks, international trade shifts, and ongoing consumption demand.
South Africa’s wheat market exposure is heightened by both domestic consumption trends and global food price movements, making ongoing monitoring essential in 2025.
Which commodities to choose according to the investor profile?
The best commodities to buy depends largely on your investor profile, investment goals, and experience level. For South African investors, some commodities may offer more stability, while others could provide opportunities for higher growth but at increased risk. Taking the time to identify where you are on your investment journey can help you make informed choices and build your confidence as you learn how the commodities market works.
| Investor Profile | Recommended Assets |
|---|---|
| Beginner | Gold, platinum, commodities-focused ETFs, unit trusts with exposure to precious or agricultural commodities |
| Intermediate | Copper, iron ore, wheat, soybeans, direct shares in mining and agricultural companies listed on the JSE |
| Experienced | Palladium, crude oil, natural gas, coal, futures contracts, options, direct international commodities trading |
Good to know
If you are new to investing in commodities, start with a small budget. This approach helps you learn how prices move, build practical experience, and avoid taking on excessive risk as you become more comfortable with the market.
How to buy commodities in South Africa?
Buying financial assets like stocks, cryptocurrencies, ETFs, or commodities is now more accessible than ever in South Africa, thanks to a wide range of secure online platforms. With clear steps and modern protections, beginners can enter the world of investing confidently and safely.
| Step | What to do |
|---|---|
| Choose a reliable exchange or broker | Select a platform that is authorised and regulated, with a good reputation and transparent fees. |
| Create an account and verify identity | Register by providing your personal information and complete the identity verification process to comply with legal requirements. |
| Deposit funds (bank card or wire transfer) | Add money to your account—most platforms support bank transfers or card payments. Check for payment limits and processing times. |
| Purchase desired assets | Explore the platform and place your order for the chosen assets (stocks, ETFs, cryptocurrencies, or commodities). |
| Secure their storage | For cryptocurrencies, consider using an external wallet for added safety. For stocks and ETFs, store them in a regulated account. |
Good to know
In South Africa, profits gained from selling financial assets—including stocks, ETFs, cryptocurrencies, and commodities—may be subject to income tax or capital gains tax. Always keep accurate records of your transactions to help with tax reporting and compliance.
Our 5 tips before buying commodities
Before investing in commodities, it's essential to take some important precautions. Following best practices helps you better understand the market, manage risk, and ensure your investments meet your goals. This is especially important in South Africa, where local and global factors can affect commodity prices. Always consider guidance from the Financial Sector Conduct Authority (FSCA) and the South African Reserve Bank (SARB) to invest safely and responsibly.
| Tip | Explanation |
|---|---|
| Research the commodity thoroughly | Learn about the commodity’s market drivers, price trends, and factors that impact supply and demand. |
| Use FSCA-regulated platforms | Make sure your broker or trading platform is authorised by the FSCA to ensure your funds are well protected. |
| Consider your investment goals | Set clear objectives and consider whether short-term trading or long-term holding suits your risk tolerance. |
| Understand all costs and fees | Check for transaction fees, storage costs, and other charges before you invest to avoid unexpected expenses. |
| Diversify your investments | Spread your money across different commodities and asset classes to reduce risk and enhance stability. |
FAQ
What are the best opportunities to trade commodities in 2025?
The best opportunities in commodities often depend on global trends. In 2025, sectors such as renewable energy, infrastructure, and food production could drive demand. It’s important to watch for changing policies, the global economy, and technological advances that may affect commodity prices.
How can I tell if a commodity is promising for investment?
A promising commodity typically shows a balance of growing demand and limited supply. Look for those affected by strong economic trends, new technologies, or changes in consumer needs. Checking historical performance and staying updated with news can help spot potential.
What strategy should I use to invest in commodities in 2025?
A balanced strategy includes diversifying across commodity types (like metals, energy, and agriculture) and setting clear risk limits. Combining basic market research with a long-term perspective helps manage risks better and benefits from different economic cycles.
What are the main risks of investing in commodities?
Commodities are usually sensitive to economic changes, weather events, and global politics, making their prices highly volatile. Currency fluctuations can also affect your returns. Only invest money you can afford to risk, and stay informed about global events.
Are there specific rules or taxes for commodities investments in South Africa?
Yes, all gains from trading or investing in commodities may be subject to local taxes, such as capital gains tax. Regulations might change, so it’s wise to check with the South African Revenue Service or a financial advisor to ensure you comply with the latest requirements.
What are the best opportunities to trade commodities in 2025?
The best opportunities in commodities often depend on global trends. In 2025, sectors such as renewable energy, infrastructure, and food production could drive demand. It’s important to watch for changing policies, the global economy, and technological advances that may affect commodity prices.
How can I tell if a commodity is promising for investment?
A promising commodity typically shows a balance of growing demand and limited supply. Look for those affected by strong economic trends, new technologies, or changes in consumer needs. Checking historical performance and staying updated with news can help spot potential.
What strategy should I use to invest in commodities in 2025?
A balanced strategy includes diversifying across commodity types (like metals, energy, and agriculture) and setting clear risk limits. Combining basic market research with a long-term perspective helps manage risks better and benefits from different economic cycles.
What are the main risks of investing in commodities?
Commodities are usually sensitive to economic changes, weather events, and global politics, making their prices highly volatile. Currency fluctuations can also affect your returns. Only invest money you can afford to risk, and stay informed about global events.
Are there specific rules or taxes for commodities investments in South Africa?
Yes, all gains from trading or investing in commodities may be subject to local taxes, such as capital gains tax. Regulations might change, so it’s wise to check with the South African Revenue Service or a financial advisor to ensure you comply with the latest requirements.
On the same topic
