Gold price increase

Gold is not like shares or other short term investments. It’s a long term investment that will often increase in price when times get tough, so it’s advisable to hold onto it for as long as possible. That being said, the spot or scrap price of gold has changed a lot in the past few weeks and months. Here we fill you in on recent events and provide our top tips for the savvy investor.

In the last year 24k gold has risen in price from £977 per ounce to £1290 per ounce – an increase of around 32%. An all-time high of £1304 per ounce was reached in February this year, and it’s likely the price of gold will remain elevated. There are many reasons for the increase, far more than can be covered in the scope of this article – all you need to know is how it affects you and what your best course of action is.

Scrap vs trade price

An 18k gold chain that weights 23 grams currently has a scrap price of a whopping £646.04 – 90% of the spot price. This can be achieved with some haggling. If the chain is very well made, signed and complete with maker’s marks and hallmarks – for example if it was crafted by Cartier Paris in 1973, it’ll be worth a lot more than the scrap price.

Because the scrap price is so high, it’s like a flood that raises all boats. The base price of all gold jewellery has risen by 32%, which affects everything made of gold. Therefore if you have old necklaces, rings, earrings or any other gold items, right now is the time to look at turning your old jewellery into cash.

Palladium

If you own something that is currently worth 32% more, now is the perfect time to think about turning your gold into something else. Moving at a much steadier pace for the last five years is palladium, the lovely luxury metal that looks like white gold and costs more than 24k white gold. The appealing factor about palladium is that it can be bought in the same formats as gold – in bullions, coins or chains. Yet unlike gold, it has increased in price consistently.

Over the last five years, palladium has risen in price from £516 per ounce to £2165 per ounce, an increase of 320%. This huge increase is on par with owning a start-up, having shares in Facebook or owning property. If you have some value locked up in old jewellery, turning it into Palladium or another type of luxury investment will increase the value of it at an accelerated rate.

Pawnbroking

Because the price of scrap gold is so high, a lot of people are having wonderful pieces scrapped unnecessarily. We have seen a lot of well made, antique and quality pieces melted down because right now it is easy money. Instead of scrapping your gold jewellery and not claiming the full value, you could get a secured cash loan against it from a London pawnbroker like Suttons and Robertsons. We know the antique jewellery market, the actual value of your items and are experts in luxury watches and pawnbroking jewellery.