Why Has the Price of Gold Jewellery Increased So Much?

If you've been shopping for gold jewellery recently, you may have noticed that prices have gone up significantly. Whether you're looking for a baby bracelet in gold, children's earrings, or a beautiful matching set for mummy and daughter, the rising cost of gold has made fine jewellery more expensive. But why is this happening? In this post, we'll break it down in simple terms and explain why solid gold jewellery is still a worthwhile investment.

South asian gold jewellery box

1. The Price of Gold is Rising Globally

Gold is a precious metal, and like many other commodities, its price fluctuates based on supply and demand. In the last few years, the price of gold has been steadily increasing. In April 2023, gold was trading at approximately £1,598 per ounce, but by April 2025, it had surged past £2,325 per ounce— this represents an increase of over 45% in GBP terms over the past two years. This surge is largely due to economic uncertainty, inflation, and geopolitical events. Investors often turn to gold as a safe-haven asset during financial instability, driving up demand and, ultimately, the price.

(*Prices sourced from Reuters, StatMuse, and market analysis reports. April 2025 price is an estimate based on the current exchange rate and may vary slightly.)

2. Inflation and Currency Fluctuations

Inflation—when the cost of goods and services rises—affects nearly everything, including gold. When the value of currency decreases, gold becomes more expensive because it retains its value better than paper money. Many central banks have been increasing their gold reserves, further influencing price hikes. This is one of the key reasons why gold jewellery has become noticeably more expensive in recent years.

3. Supply Chain Challenges and Production Costs

The cost of mining, refining, and transporting gold has risen due to increasing energy costs, higher wages, and supply chain disruptions. Also, crafting high-quality jewellery requires skilled artisans, and as labour costs rise, so does the final price of fine gold jewellery. These factors all contribute to making gold jewellery more expensive to produce and buy.

4. Higher Demand for Gold Jewellery

Gold jewellery is not just an accessory—it’s an investment and a cultural tradition for many families, especially in South Asian and South East Asian communities (as well as MANY others around the world). As demand for high-quality gold jewellery continues to grow, prices follow suit. This is particularly true for solid gold pieces, which are far more durable and valuable compared to gold-plated or gold-filled jewellery. Solid gold jewellery is traditionally gifted during many cultural and religious occasions and so demand will always continue.

Is Gold Jewellery Still Worth Buying?

Absolutely! Despite the rising prices, solid gold jewellery remains one of the best choices for quality and longevity. Unlike fashion jewellery, which can tarnish or wear down over time, real gold holds its value and beauty for generations. Whether you're buying a baby gold bracelet as a keepsake, a pair of children’s earrings for a special occasion, or a diamond earring set for mummy and daughter, investing in fine gold jewellery means you’re purchasing something that lasts. Not only will you or your children be able to wear it for many years but it can also be passed down to future generations to wear, cherish and appreciate.

At Suri-Mai Jewellery, we take pride in offering exquisite gold jewellery designed to be treasured forever. We design sleek and stylish pieces that can stand the test of time, so they can be worn for years to come. While prices may be higher, the value of real gold jewellery—both sentimental and financial—remains and will remain unmatched.

Looking for the perfect piece? Explore our collection of fine gold jewellery for children today!