Surge in Gold Prices Boosts Value of Jewellery Collections

The price of gold has reached unprecedented levels, climbing approximately 45 percent year-on-year and over 100 percent in the past five years. This surge is significantly impacting the value of gold jewellery, including pre-owned pieces, prompting many owners to reassess their collections. Auction houses are reporting increased interest from individuals eager to appraise and potentially sell their items.

Christine Power, head of fine jewels, watches, and luxury accessories at the auction house Webb’s, noted a marked increase in the values of gold items. “People have started to realise that there is a return, so we are finding that more people are going through their items at home and seeing what little treasures they might have,” she said. Power explained that the appraisal process involves evaluating the weight of the item against the current gold price, which has seen a significant rise over the years.

She cited examples of how the market has shifted, stating, “In the last four years, the gold price has moved up about 40 percent.” This change has influenced the pricing of jewellery, with plain gold items, such as fob chains and bangles, experiencing notable increases. For instance, an 18 karat yellow gold Tiffany bangle recently sold for US$12,500, exceeding Webb’s initial estimates.

The demand for high-end brands remains robust, according to Power. She highlighted the ease of presenting such items to market, noting that it offers a swift return on investment. “We do have to consider the item’s condition during appraisals. If something is worn, we would adjust the pricing accordingly,” she added.

Andrew Grigg from the auction house Cordy’s shared insights on how some jewellery items might not meet high standards and may end up being melted down for new designs. “An attractive piece or a good vintage or antique piece of jewellery will always sell well and above its gold value, but not all jewellery fits into these categories,” Grigg stated. He explained that while some items may only fetch their gold value, others can command much higher prices due to their desirability.

The outlook for gold prices remains closely tied to broader economic factors. Chris Smith, general manager at CMC Markets, indicated that gold recently hit a new all-time high at US$3,450. This spike is attributed to dovish data emerging from the United States, which has influenced market expectations for an impending rate cut by the Federal Reserve.

Smith explained, “As long as the Fed moves into rate-cutting mode, I don’t see any reason why gold is going to have a sharp pullback.” He anticipates that prices could rise to US$3,500 with continued central bank demand and interest in other precious metals like silver, which has also seen significant gains.

As gold’s value continues to rise, many collectors and casual owners alike are encouraged to revisit their jewellery collections. The current market dynamics present an opportunity for individuals to capitalise on their assets, whether through appraisal or sale.