Gold Prices Soar to Record Highs: How it Affects Jewelry and Ways to Save

Gold prices have reached an ALL-TIME HIGH! For the past several days (I write this on August 29, 2024), the spot price of gold has been over $2,500 per ounce. This is astounding when compared to the price when I started my business—under $400/oz. 35 years ago! That’s an increase of over 600%.

Even more striking is the comparison with just a few years ago. On August 29, 2019, the spot price of gold was $1,529. In just 5 years, it has surged by nearly $1,000. So, what’s driving this dramatic increase, and how is it affecting fine jewelry?

Why Gold Prices Have Surged in 2024

1. Inflation: Prices for everyday goods have risen significantly. As inflation increases, the value of currencies declines. Investors often turn to safe-haven assets like gold, boosting demand and driving prices up.
2. Political Tensions: Escalating geopolitical risks and conflicts globally prompt investors to seek safe havens for their assets, further pushing up gold prices.
3. Currency Depreciation: The depreciation of major currencies against the U.S. dollar has made gold more expensive in those currencies, increasing demand from international buyers.
4. Stock Market Volatility: Global stock markets have been highly volatile this year, leading many investors to move their funds from stocks to gold.

These factors have combined to push gold prices to historic highs. Will they continue to rise? Only time will tell, but many hope to see prices stabilize or decrease in the coming months.

How the High Price of Gold Is Affecting Fine Jewelry

1. Lighter Designs: Designers and manufacturers are using less metal in their creations to manage costs. By creating lighter-weight pieces, they reduce the amount of gold used and thus the overall cost.
2. More 10K Gold Options: With rising gold prices, more consumers are opting for 10K gold jewelry. While it contains 41% gold compared to 58% in 14K gold, the lower karat options offer significant savings.
3. Increased Demand for Estate Jewelry: Estate jewelry, or pre-owned pieces, is gaining popularity due to its cost-savings.Purchasing pre-owned jewelry means you pay less due to the absence of manufacturing costs and middlemen markups. As a result, estate jewelry can cost about half of what a new piece would - sometimes even less! Many estate pieces, once polished, look like new. Be sure to ask us about our estate bargains.

How to Save on Beautiful Estate Gold Jewelry

• Buy Estate Fine Jewelry:  When we buy pre-owned jewelry from the selling public, we get it a great price.  We don't pay for labor, or middle man markups, and we have to pay just a fraction of its wholesale value in case we have to recycle it.   And we pass the deals on to you.   Some of our estate pieces we put online in our vintage and estate jewelry section.   When you go there - be sure to sign up to get emails on new estate purchases. 

> Another suggestion:  If you are looking for something in particular, and you don't see it on our website,    email, call or send us a live chat message on what you are looking for.   We generally have at least a 100 pieces of beautiful estate jewelry in the safe waiting for a new home!   We just don't have time to add everything to the website.  We will send you pictures and videos with descriptions and prices.          

• Join Our Facebook Estate Deals & Steals Group: Every Tuesday and Thursday, we post a jewelry item at an incredible discount.  Here is the link to save big on Facebook Estate Deals.  When you get there, you need to join the group to have access.  There is no cost or obligation.

Someday we may look back at this time and realize that $2500 gold price was a bargain.  Time will tell.  In the meantime, if the current gold prices are squeezing your jewelry shopping, consider buying lighter weight pieces, looking at 10K gold, and definitely considering the savings that estate jewelry offers.