Why is the Price of Gold Soaring in 2024?

May 07, 2024

Global gold prices in 2024 are on the run. We believe in transparency, which is why we wanted to let you know about how this is affecting our business. Gold is the earth’s treasure we all covet but it is also a fluctuating global commodity subject to market forces…

Now, hang tight as we dive into a bit of jeweller lingo, as we try to unravel and bring you up to speed on the big web that is the international gold market! Over the past 20 years, gold prices have been steadily climbing, with a real jump in 2020 when COVID hit. According to ABC Bullion, the largest independent bullion dealer in our beautiful country, gold's spot price hit a whopping $3556.80 per troy ounce as of April 10, 2024. To put that in perspective, when Black Finch Jewellery was born, back in 2007, gold was peaking at $1543.11 per troy ounce on September 23 – talk about a big change from then to now!

So what does this all mean? To grasp the full significance of gold's value and how its recent surge affects businesses like ours in the jewellery industry, let's break it down for you with a simple 101...

The timeless allure of gold

Gold has held a special place in the hearts of cultures worldwide for centuries, cherished for its stunning aesthetics, rarity and lasting strength. These qualities not only enhance its desirability but also make this precious metal a highly coveted material with diverse applications – spanning from jewellery and dentistry to electronics, aerospace, and beyond. In addition to its versatility, gold boasts a rich history in trade, dating back a staggering 6000 years, establishing itself as a remarkably fluid investment due to its ease of acquisition and sale.

What's the allure of investing in gold?

As our Black Finch founder Raymond once put it, "Investments need to have a captivating narrative." And what story could be more captivating than the enchantment of gold? Not only is it visually stunning and limited in supply, but it also retains its value over the long haul – making it an appealing and relatively low-risk investment during periods of economic instability.

Why gold prices are soaring

So, why is gold suddenly so hot? It's all about demand, gold is literally trending. Gold has always been a safe bet against inflation, meaning its value tends to hold steady or even go up over time. When the dollar and regular investments like stocks start losing value in times of economic chaos and global uncertainty, gold becomes the go-to safe haven for your money. Plus, let's not forget, gold is a limited resource that you can't just whip up in a factory. So, with demand high and supply low, it's no wonder prices are through the roof.

How it impacts jewellers

The recent surge in gold prices is definitely putting pressure on jewellers like us. Fine jewellers who value local manufacturing, quality and bespoke designs.

Suppliers are hiking up their prices, leaving us in a bind. We've been grappling with tough decisions, carefully navigating our pricing model to ensure our products offer value while remaining competitive. With speculation and inflation on the rise, it's become clear that we need to adjust our prices accordingly. We've held off as long as we could, but in the coming weeks, we'll be raising our prices.

Gold may be a treasure from the earth, but it's also a fluctuating global commodity influenced by market forces. With so many stunning styles available, updating our website with new prices is a slow process. So, take advantage of this opportunity and pick up some delights before the prices go up – call it an investment in beauty and value.

Our source of gold

As a sustainably-minded jeweller, we're proud to exclusively use 100% recycled refined gold from a reputable Melbourne refinery. This means that your jewels are sourced from 100% post-consumer gold in a supply chain where everyone receives a fair wage.This gold is sourced from old jewellery, electronic devices and similar sources, and is part of a circular economy that ensures zero waste into the environment.

A more economical alternative

If you happen to have gold in your possession, you might find it comforting to know that it's now worth more than ever before. With over 15 years of experience in buying and selling gold, we offer you the option to trade in your gold for credit towards a new piece or let us transform your heirloom gold and stones into a custom design. Alternatively, if you love gold jewellery but are looking for a more economical choice, consider our 9ct gold pieces. They're just as beautiful and durable as their 18ct counterparts, but without the hefty price tag.

If you’d like to book a custom design consultation with your heirloom gold, please contact us at info@blackfinch.com.au.