Investing in gold jewellery has often been seen as more of a luxury purchase than a financial strategy. However, those who bought gold jewellery a decade ago may now find that their investment has appreciated significantly, even after accounting for the jeweller’s profit and markup. With gold prices having risen steadily over the past 10 years, let’s explore why this trend has worked in favour of jewellery buyers.
Gold Price Appreciation Over a Decade
Gold has long been a safe-haven asset, and its price movements over the last decade have reflected ongoing economic uncertainty, inflation concerns, and global financial instability. In 2014, gold was trading at around £750 per ounce. Fast forward to 2024, and gold has surged to record highs, surpassing £1,500 per ounce. This means that even if you purchased gold jewellery with a typical jeweller’s markup, you would still be in profit today.
Understanding the Jeweller’s Markup
When buying gold jewellery, you are not just paying for the metal itself but also for craftsmanship, brand value, and retailer profit. A jeweller’s markup can range from 20% to 300%, depending on the design, brand, and other factors. However, since the underlying value of gold has more than doubled in many cases, even with these markups, the intrinsic metal value has risen enough to ensure that your jewellery retains and even exceeds its original investment value.
Why Gold Jewellery Holds Its Value
- Intrinsic Metal Value – Unlike fashion jewellery, gold jewellery is made from a precious metal that has a tangible, globally recognised value.
- Rising Gold Prices – With economic fluctuations, central bank policies, and global crises influencing the gold market, the long-term trend has been upward.
- Limited Supply – Gold is a finite resource, and mining production has struggled to keep up with demand, further supporting higher prices.
- Liquidity and Resale Value – Gold jewellery can be resold easily at gold-buying businesses such as GoldCompany, ensuring you can convert it back into cash whenever needed.
Selling Your Gold Jewellery Today
If you’re considering selling your gold jewellery, now could be an opportune moment. With gold prices at historic highs, you could receive a substantial return on your initial purchase. Services like GoldCompany offer competitive rates for scrap gold, ensuring you get the best possible price for your jewellery’s gold content.
The Bottom Line
Gold jewellery is not just a statement of luxury—it is also a store of wealth. If you purchased gold jewellery a decade ago, the rise in gold prices means your investment has likely appreciated. Even with the initial jeweller’s markup, today’s gold values make selling your jewellery a profitable option. Whether you’re looking to cash in on your investment or simply reallocate funds, now is a great time to explore your gold-selling options.
