The Rising Price of Gold & How it Significantly Impacted the Fine Jewellery Industry
The rising price of gold has significantly impacted the fine jewellery industry. The increase in gold prices impacts the production of gold jewellery leading to higher retail prices for our clients.
Why has the price of gold increased significantly over the past twelve months?
The key drivers that are influencing the increase in gold prices all over the world include —
- Geopolitical tensions particularly in the Middle East and the war in Ukraine. War always heightens the demand for gold as gold is a safe commodity to store as an asset.
- Federal Reserve rate cuts. All nations have experienced rate cuts across the board. The outcome is lower Treasury yields in all developed Nations which makes gold more attractive than bonds.
- Central banks. Central banks all over the world, especially the USA and China have accelerated their accumulation of gold to bolster their reserves.
- These combined factors including the closure of some of the world's biggest producers of gold has not helped.
Due to the ongoing conflicts and political instability several large gold mines have either closed or their operation has been disrupted. PNG, Ethiopia to name just a few.
Why is gold important in engagement ring design?
Gold is crucial for creating well made, sturdy engagement rings. The reason gold is the preferred metal is that it is malleable and a durable metal. This allows Morgan Co to craft intricate, detailed designs while maintaining the strength required for everyday wear. Every woman wants peace of mind to know that their precious ring is safe.
The structural integrity of your engagement ring will depend on the type and amount of gold used in the design and manufacturing.
A higher carat weight such as 18ct gold is softer and more pliable. The amount of pure gold is higher than in 14 or 9ct gold. Making 18ct gold is the most expensive choice when deciding on carat weight.
A lower carat weight, 14ct will include other alloys which makes the gold less pliable but more durable. 14ct gold will cost less that 18ct gold, it is a good alternative to 18ct gold giving the ring durability and not compromising on colour of the gold.
Ring design and gold
Over the past few years the modern trend of minimalist engagement ring designs and the demand for thinner brands have had the added bonus of reducing the overall gold content in the making of the ring.
Many contemporary engagement rings feature more intricate settings or multi-stones, which prioritise gemstones over metal. These design choices allow us to reduce gold usage while maintaining high visual appeal and luxury.
However, if too little gold is used, particularly thinner bands the ring may be more prone to bending or damage over time. A balance between gold content and structural design is essential to ensure that the ring remains its strength while also meeting the clients aesthetic preferences.
Therefore, while modern designs might use less gold, the amount and quality of the gold still play a vital role in ensuring the ring's longevity and strength.
2025 Trends and Gold
2025 will see the chunky engagement ring trend gaining more momentum. The chunky style highlights bold statement rings, with wider bands and larger centre stones, sometimes in a bezel set. While stunning, these trends require more gold due to their size and weight.
The rising cost of gold over the past year adds to the challenge for those who want a chunkier, more elaborate engagement ring design. As gold prices have surged, even small increases in the metal content will significantly drive up the cost of the ring. Therefore, designs that use more gold, such as chunky rings, are becoming more expensive.
Can I use my old gold to make my engagement ring?
Yes, you can use your own gold in the design of your engagement ring. Morgan Co offers custom design services such as melting down and repurposing your old gold. The decision to use old gold can be a sentimental decision, as it allows you to incorporate gold from a family heirloom or old jewellery, creating more meaning within the engagement ring.
However, the process is tedious and time consuming and can often cost more than new gold due to the time it takes to refine the old gold into its pure form.
Gold refining process requires careful handling. We first need to assess the purity of your gold (e.g., 9ct 14ct or 18ct) to ensure it is suitable for crafting a durable ring. Sometimes, additional gold may be needed depending on the design's complexity or size. Most times it is not economical to have your old gold refined to save money only.
