Gold prices have hit a fresh record high. They have been strong for the last 12 months, originally driven by the Russian invasion of Ukraine and then the Israel / Hamas war but the latest spike is said to be due to the economic uncertainty in world markets and the US Federal Bank’s suggestion of falling interest rates. However, at the end of the day and no matter how many opinions you research, the honest answer is that no one really knows except for the fact that it is as high as it’s ever been since the yellow metal was first traded and is currently 38% higher than its last low point in 2022.
Good As Gold……
Gold has always been the fall-back position at times of economic uncertainty and there is no surprise to see the yellow metal being bought and sold in volume as the markets fluctuate and people want to put their cash into a safe haven.
What Makes Gold So Rare And Valuable?
Did you know that there are no naturally occurring processes that produce new gold… at least on Earth anyway. The process by which gold is created takes place in outer space! Gold is formed when stars explode or collide, only then are the necessary energy and conditions right to create gold. Therefore, all of the gold found on earth today has originated from meteorites that have crashed through the atmosphere over billions of years and it is believed that over $770 trillion of gold still lies hidden in the ocean.
Those who are fans of Aussi Gold Hunters on TV will be very familiar with the excitement of metal detectorists when they get a ‘signal’. You can get just as lucky in your own house going through those drawers where you deposit the things you never wanted to throw away and find a small fortune in old or scrap gold that you probably forgot you even had.
An average wedding ring weighs around 3.5 grams, the weight of a 1 pence piece, and if it’s made of 22ct gold then its worth over £180 in metal value alone at today’s prices.
It’s therefore a good time to buy gold if you want to speculate on the price going higher or invest as a store of cash and an equally good time to sell your gold and scrap or broken and unwanted jewellery if you want to cash in while the price is so high and raise some funds.
Diamonds However
Are A Different Story Altogether……
In 2020 Russia produced 30% of the world’s diamonds. They mined 19 million carats of diamonds followed only by Australia who mined 40% less at 12 million.
Only 20% of all production makes it to the status of valuable polished gemstones as almost half of the world’s mined diamonds are used for industrial purposes as ‘rough’ diamonds used in cutting, drilling and polishing.
Natural diamonds spiked in value by over 15% up to the middle of 2022 however prices have since re-corrected and fallen back to more normal levels partly due to the emergence of their man-made equivalents – Laboratory Grown Diamonds.
Lab grown diamonds are almost identical to natural diamonds in every way, physically, chemically and optically except that they are literally ‘grown’ in a laboratory. There are however two ways to tell them apart. One way is using a specific testing machine which, while still relatively expensive, will identify nearly 99% of lab grown stones through the type of carbon atoms they contain which differ from those in natural stones.
The other way is price. A lab grown diamond can be over 10 times less expensive than a natural stone and the price continues to weaken as more and more suppliers enter the market.
Will this make a lab grown stone eventually as low in price as a cubic zirconia? After all these also started life being many times more valuable than they are now. Only time will tell but the answer perhaps lies in the definition of a gemstone as adopted by the industry.
A gemstone is rare, durable and beautiful. While a lab grown diamond may tick two of those boxes, it is no longer rare and that may become the most defining difference between a natural unique diamond and its man-made equivalent.
Second Hand – Not Second Best…….
If you are looking to buy good value gold and diamond jewellery then the pre-owned market is where to shop. Second hand jewellery is a bargain right now compared to its new equivalent as its price is more likely to be linked to the original buying-in price when gold was weaker so you can expect to pay almost half the price for second hand jewellery compared to the new equivalent piece. Therefore do not miss the opportunity to get shopping at Christopher Brown Jewellers and you will find some amazing bargains in our 9 stores.
Pawnbroking Loans…….
While gold price is going bonkers, the bills still need paying. Why leave your gold or diamond jewellery sat in a box when they could be helping you with your cash-flow instead?
Recycling is a regular part of our everyday culture and more and more people are beginning to apply the practice to their jewellery.
Gold-cycling has become a popular theme of recent years and many of our customers use their items for instant loans, not wanting to part with their precious goods. Others have sold their jewellery and watches outright and used the money for summer holidays, to pay off bills or simply to buy something new. You will be pleasantly surprised with how much you can raise and if you use our pawnbroking service, you remain the owner of the goods and you can simply collect your jewellery or watches when you repay your loan and interest, which can be at any point during the term of the 7-month loan contract.
Christopher Brown Jewellers have branches at York, Seacroft, Shipley, Pontefract, Goole, Stockport and Prescot and have Brown and Gold stores at Batley, and Toxteth.
Call into your nearest store to discuss a loan, sell your gold or view our fantastic collection or pre-owned diamond jewellery and luxury watches. Now is the time to goldcycle so visit your nearest store and make your jewellery work for you!
To find out more, visit our website www.christopherbrownjewellers.co.uk to browse our latest lines or if you want to hunt out the real bargains visit our stores directly and find that special piece before its too late.
Christopher Brown
