Gold has long been a safe-haven asset, but as of early 2025, it has surged to extraordinary new heights. To better understand what’s driving the gold market and how it affects the jewellery industry, we sat down with Gerard McCabe Co-Managing Director Justin McCabe.
WHY IS GOLD GOING UP IN VALUE?
According to Justin, the answer is simple: “Where there's uncertainty, investors always turn to gold.” Periods of global instability consistently push demand higher, which in turn drives prices upward. He explains that this surge is being fuelled by a combination of inflation, currency movements and geopolitical events.
As the cost of living rises, gold becomes a hedge against eroding currency value. Fluctuations in major currencies, particularly the US dollar, also influence gold’s global pricing, while worldwide uncertainty encourages investors to seek out stable, long-term assets. Because gold pricing is “universally set”, these pressures are consistent across markets. Over the last 12 months alone, Justin notes that “the price has risen over 50%,” a dramatic increase that has wide-reaching impacts for both the industry and consumers.
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How Does This Impact Jewellery Pricing?
One of the most immediate effects of rising gold prices is the increased cost of manufacturing. Justin explains, “With the cost of the raw materials rising, every ring, pendant, clasp, bracelet, and chain becomes more expensive to make, even if the design hasn't changed.” This reflects the intrinsic cost of the metal rather than design complexity or fashion trends.
For jewellery owners, however, there is a silver lining. As Justin points out, “If you have any gold jewellery, its value has significantly increased,” making it an ideal time to update valuations to ensure your insurance accurately reflects current replacement costs.
Shopping for Gold Jewellery in a Rising Market
Higher material costs naturally influence the retail price of new gold pieces, but there are still meaningful ways to find value. One of the strongest opportunities lies in secondhand, vintage, and antique gold jewellery.
These pieces are not priced purely on the raw gold content; instead, their value reflects craftsmanship, era, rarity, and provenance. This makes them excellent value compared with brand-new designs and offers buyers the opportunity to own jewellery with character and history. Justin notes that “there’s been a popular rise in vintage and antique gold jewellery,” driven both by the exceptional workmanship of older pieces and the growing support for the circular economy.
Our buying team is continuously on the lookout to acquire high-quality vintage, antique, and signed jewellery. Alongside this, we offer a carefully curated selection of antique and vintage gold jewellery for sale in our Adelaide boutiques.
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What About Alternatives?: Considering Platinum
With gold prices rising, many clients are also exploring alternative metals, and platinum has become an increasingly attractive option. Justin remarks, “We have observed a shift towards platinum in some areas of jewellery as it’s very price competitive.”
Platinum offers exceptional durability and maintains its naturally white finish without the need for regular rhodium plating. It is a premium material with a distinctive weight and presence, yet in the current market it can be comparable in price to gold, and in some cases even more cost-effective.
For engagement rings, bespoke creations and heirloom pieces intended for daily wear, platinum provides excellent longevity and value for money in today’s market. To learn more about platinum, read our blog post that explains the difference between white gold and platinum.
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Gold’s Enduring Significance
Despite market fluctuations and shifts in consumer behaviour, Justin emphasises that gold retains an emotional and symbolic significance that extends far beyond its price. “Gold carries a real permanence and meaning. It has for two millennia,” he says.
“A beautifully crafted piece of gold jewellery becomes part of a family story, and with the right care, will last for generations.” This enduring quality is something we have championed throughout our 40 years of business, ensuring that each piece is crafted with intention and artistry.
Thinking About Buying, Valuing, Remodelling, or Selling Gold?
Whether you’re considering an investment purchase, updating your valuations, remodelling or restoring an heirloom piece, or exploring the value of your gold jewellery, Justin encourages clients to reach out for expert guidance.
“If this information has you thinking about your gold jewellery, please get in contact with the Gerard McCabe team today. Our highly experienced team is here to assist you with all your important jewellery decisions.” - Justin McCabe, Co-Managing Director.
DISCLAIMER
The information provided in this blog is for general informational and educational purposes only and does not constitute financial, investment, or legal advice. It does not take into account your personal objectives, financial situation, or needs. All content is the opinion of Justin McCabe, Co-Managing Director, Gerard McCabe, and should not be relied upon as a substitute for professional advice. You should consult with a professional to determine what may be best for your individual needs.
