Right this moment’s weblog publish is dropped at you by an incredible shopper of mine, Jenny Zhang. We now have met a number of occasions in individual, as she is native to the Nashville space, and it’s so enjoyable to speak jewellery with somebody who has a newly blossomed love and fervour for it. After studying about what she does and her experiences, I assumed this may be an ideal matter for her to discover and enlighten all my readers. Jenny has over 15 years of expertise in options asset administration and she will be able to communicate to the present scenario involving the rising costs of gold with regard to investing…take it away Jenny:
The opposite day, Caroline @stuffedcrustcouture jokingly shared that she tried to persuade her husband that purchasing gold was probably not spending cash as a result of it’s simply transferring money into gold. The vast majority of the worth was nonetheless there and you possibly can get it out if you happen to wanted it to. Her husband rolled his eyes…however guess what? She’s completely proper.
Should you’re within the jewellery world—whether or not as a passionate collector, a designer, or somebody who simply loves a great sparkle—you’ve possible observed one thing elevating eyebrows (and coronary heart charges): gold costs. The market has been on a tear, and for the primary time in historical past, gold is buying and selling above $3,300 per ounce.
Let that sink in.
Only a yr in the past, gold was priced round $2,160 per ounce. Ten years in the past? A modest $1,160. Should you’d purchased simply $100 price of gold 5 years in the past, that funding can be price about $200 at the moment. Whereas that’s incredible for long-time holders, it’s leaving creators and collectors alike asking massive questions: Will I have the ability to afford to make jewellery? Will I’ve to boost my costs? Can I nonetheless construct my assortment?
However fairly than taking a look at gold solely by way of the lens of bijou, I invite you to see it as one thing extra: an funding—one with centuries of historical past and actual, enduring worth.
Gold is a time-tested different funding, and right here’s why it would deserve a spot in your portfolio:
1. Gold is a Highly effective Diversifier
You’ve heard the saying: don’t put all of your eggs in a single basket. That’s the center of diversification—spreading investments throughout totally different belongings to cut back threat. Gold is a standout right here as a result of it behaves in another way than conventional belongings like shares or bonds. When these markets wobble, gold typically shines. Actually.
2. Gold is Countercyclical
Gold tends to rise when the inventory market falls. That makes it what traders name a “countercyclical” asset. For instance, in 2025, whereas the S&P 500 has gained a formidable 18%, gold has outpaced it with over a 30% rise. Zoom out, and gold’s efficiency is much more placing: over the previous 25 years, gold has surged 12.7 occasions in worth in comparison with the S&P’s 3.6 occasions.
Translation? In occasions of market stress, gold will help stabilize your portfolio.
3. Gold is an Inflation Hedge
As inflation chips away on the worth of paper cash, gold holds robust. It’s finite—you may’t simply print extra of it, not like {dollars}. With solely about 244,000 metric tons of gold recognized to exist (in line with the U.S. Geological Survey), shortage helps gold protect its worth whilst currencies weaken.
That’s why traders typically flip to gold to take care of buying energy over the long run.
4. Gold is a Protected-Haven Funding
When the world will get chaotic—whether or not attributable to inflation, battle, or financial downturn—gold traditionally turns into a refuge. Let’s have a look at two examples:
• 1976–1978: The S&P 500 dropped over 19%. Gold? It rose 54%.
• 2007–2009: Through the Nice Recession, the S&P fell practically 57%. Gold elevated 25%.
In unpredictable occasions (and let’s face it, these occasions are nothing if not unpredictable), gold presents stability.
5. Gold is a Arduous Asset—with a Flooring
Not like digital or paper investments, gold is tangible. You may maintain it. Put on it. Go it down. It’s actual—and that actuality comes with what traders name a “flooring”: a minimal worth it received’t fall under. Even if you happen to melted your gold jewellery down, you’d nonetheless stroll away with one thing helpful.
Briefly, it’s not simply lovely. It’s bankable.
Visualizing Gold’s Efficiency
To higher perceive gold’s position in a diversified portfolio, think about the next charts:
Gold vs. S&P 500 Over the Final 20 Years
This chart compares the historic proportion return for the Dow Jones Industrial Common (blue) in opposition to the return for gold costs (orange) during the last 20 years. It illustrates how gold has carried out relative to shares throughout numerous financial cycles.
Inflation-Adjusted Gold Costs
This chart exhibits the true (inflation-adjusted) gold costs per ounce, offering perception into gold’s buying energy over time.
So, What’s Subsequent for Jewellery Lovers?
Sure, gold is costlier than ever. And sure, that impacts how we purchase and create jewellery. However understanding the broader worth of gold—as a timeless, secure, and highly effective funding—provides depth to each piece you personal or design.
So whether or not you’re creating a brand new piece, purchasing for a future heirloom, or just watching the markets in awe, keep in mind: gold is greater than a development. It’s historical past, magnificence, and technique multi functional glittering type.
