Retailers and jewellers... are you affected by the rise in gold prices?

Gold prices have hit a record high of $3,500 per ounce today – bullion has gained 32% so far this year.

Are you affected as retailers and jewellers by higher prices? Carol and Jim have shared their thoughts below. But we want more responses, thanks.

Carol Vickers, Owner at Created by Carol, said her jeweller business is being hit by higher prices.

She added: "As a jeweller, the sharp rises in precious metal values are a double edged sword. While jewellers who keep bullion in stock will see an increase in its value, the market impact of skyrocketing prices inevitably means that producing affordable pieces becomes vastly more difficult. 

“In a time when consumer pockets are already squeezed by the cost of living crisis, many jewellery businesses are struggling to meet sales targets. As any jeweller knows, precious metal prices always soar when the financial markets are wobbly; it's rarely a good sign. Further increases in bullion costs could well put many small jewellers out of business.”

Jim Tannahill, Managing Director at London-based S&R Jewellers, said he is seeing more interest in gold as time goes on.

He said: "Nobody can predict where the gold price will go - if they could, they’d already be extremely wealthy. Historically, gold has performed exceptionally well and we have seen a sharp increase in people selling gold as prices have continued to rise. 

"Indeed the gold price has nearly doubled since early 2023, and over the past 10 years, gold has risen by over 200%. For long-term holders, this may perhaps be an opportune time to sell. There aren’t many investments where you will have made 20%+ annual return over 10 years. 

"Others prefer to retain their investment and raise short-term liquidity by borrowing against their gold – as prices have risen the more you are able to borrow against it for short term funding. Many investors invest in gold as a hedge against uncertainty so it’s always worth considering holding as part of a diversified portfolio as it can always be leveraged to cover short term liquidity challenges."