Gold and diamond prices are hitting all-time highs, so what does that mean for you? Let’s explore what causes gold prices to rise, why the prices are increasing and if they will rise again, and how you can invest smartly.
- What makes the gold price rise?
- Why gold price is rising
- Will the gold price rise in the future?
- What influences will cause a diamond price increase?
- How to make a smart investment
What makes the gold price rise?
Economic & Political Crisis:
Gold and diamond prices are known to fluctuate due to economic factors and geopolitical crises.War, natural disasters, disease and politics can create a price spike as people turn to gold as a solid investment during unstable times. People lose faith in banks and invest in gold, a tangible and reliable asset for their hard-earned money. Banks, businesses and governments use bullion as stock holdings for a stable alternative to currency.
Why is the gold price rising?
Considering we are facing a tumultuous time with Covid, bushfires and floods, contentious international politics and potential war, gold prices are on the rise.
Turmoil between Russia and Ukraine, alongside a record-breaking level of high inflation in the US, recently drove the gold price to new heights. A recent article by Business Standard noted gold prices have already risen by 18% from the start of this year and predicted it to increase a further 25% by the end of the year.
- War & price rise
War has traditionally increased the gold price, as witnessed over the last 100 years, with an unprecedented gold price jump of 126% during the late 1970’s with the Iran-Iraq war, revolutions, conflicts and invasions of Afghanistan by the Soviet Union.
- Gold & other alloys
Jewellery pieces have also increased in value at an astronomical rate. Gold in jewellery isn’t simply based on the gold index as it is a mixture of other high-quality alloys that impact the price. Spanning the last 20 years, gold has appreciated by 472%, while the value of some precious stones has increased by 900%. Combining precious metals, gemstones and craftsmanship, your jewellery is worth more than the base gold price in the market.
Will gold prices rise in the future?
Yes, because of the viable investment opportunities, central bank asset diversification, consumer demand and ever-increasing gold use in our modern tech-driven world, gold prices will rise in the future. As discussed in a recent article by Capital.Com Australia, these trends are creating ‘a perfect storm’ for a gold rally, with a striking gold price increase predicted in the second half of 2022.
Diamond price increase 2022:
Similarly, savvy investors will turn to diamonds as a safe investment. Diamonds are a trusted global market, with many countries working together to ethically source and transport quality diamonds across the globe.
Recent tensions have limited trade between countries, and Covid has affected transport. We now see a worldwide ripple effect of less supply and more demand.
In the past month alone, diamond prices have skyrocketed by 25%.
How to make a smart investment?
What does all this mean? It is not all doom and gloom. If you are searching for your perfect diamond ring, it simply means the time is now.
With diamond availability affected by the global supply chain, searching for a particular diamond size, shape or grade can translate to what is here today may be gone tomorrow. And a lengthy wait to find another perfect stone.
Top Tip to make the gold & diamond investment in 2022:
Secure your gold or diamond with a low deposit at current rates:
The jewellery industry forecasts gold and diamond prices will continue to increase substantially over the next few years. In simple terms, the longer you wait, the more expensive it will be.
With a low deposit, you can secure the diamond of your dreams at today’s prices and then take your time with your design.
Beat the diamond price rise. Investing now is a smart investment.Don’t be the person who kicks themselves in 5 years because you didn’t jump right in.
The value of your investment with Bell & Brunt
A Bell & Brunt ring lasts a minimum of 30-50 years, meaning your investment will increase dramatically. And as a diamond lasts forever, your investment will continue to grow for your family through future generations.
Our legacy of 102 years of experience helping over 500,000 people create their perfect pieces will ensure you will cherish your unique jewellery for years to come. Our fifth-generation family artisans are renowned for handmaking jewellery that marks your special moments and becomes part of your family legacy.