Gold at record price, more expensive jewelry

Where will the price of gold go? 2024, as we have already written, is a hot year for the yellow metal: on the London and New York markets, gold has been sailing at historic highs for some time. On Friday, August 16, for example, it exceeded $2,500 an ounce for the first time (an ounce is equivalent to 28.3 grams). The cost of gold jewelry, therefore, is also expected to rise. Since the beginning of the year, the value of gold has increased by 22% if purchased in dollars. And analysts’ forecasts continue to indicate that the upward trend is not over. Geopolitical tensions and the central banks’ policy of reducing interest rates seem to be the main reasons for the rise in gold.

But not only that. Because the price is also influenced by sustained demand from the market. Central banks, especially the Chinese one, bought a lot of gold in 2022 and 2023, over a thousand tons a year. Another reason is the investments of savers, which pass through ETFs, passive funds that replicate the performance of a specific index, in this case the one linked to gold. But if you want to invest in gold, you must remember that the yellow metal is not a risk-free asset. If winds of peace were to finally blow in the Middle East and Ukraine, tensions would ease and gold as a safe haven would be less attractive. Furthermore, gold denominated in dollars is also linked to the value of the US currency, which is variable compared to other currencies.