Across time and across the world, nearly every culture places a high value on the gorgeous gleam of gold.
For decades, the world’s precious metal experts have warned about approaching “peak gold” – the point where the amount of gold mined from the Earth is diminishing with each year. This prediction has now become reality: Our gold supply is officially dwindling for the first time in history.
In 2018, gold mining companies are finding fewer new gold deposits. The truth is, there hasn’t been a large-scale gold discovery anywhere in the world for more than a decade. That’s over 10 years! What’s more – they are finding the gold from newly-discovered deposits is lower in quality than gold mined from older more established deposits.
Most experts agree the Earth’s supply of mineable gold will dry up within 20 years, including Randall Oliphant, chairman of the World Gold Council. That’s around the year 2038 … yikes! The lack of the precious metal will hit the jewelry industry the hardest, because 53% of mined gold is made into jewelry. All other uses of gold, including electronics, dentistry -even the production of gold bars and coins, require relatively small amounts of gold compared to the designing of jewelry.
What does all this mean for gold jewelry lovers?
Some effects of the world’s peak gold status could include:
- Higher prices. Like anything else in the global marketplace, when the supply is reduced, the price tends to go up. Don’t be surprised if you see high-quality gold rise in price over the next couple of years.
- Collector profits. People who own quality gold jewelry may see its value rise. That’s great news for jewelry owners who already have large collections and for sellers, but not-so-great news for people looking to buy more gold soon. Still, if you invest in gold jewelry, you’ll probably see it become more valuable over time.
Complex Marketplace, Volatile Sales
Because the marketplace is complex, the next decade could be volatile as gold mining companies and jewelry sellers adjust to a new normal. Right now, gold hasn’t become outrageously expensive – yet. In the next few years, buyers may pay a bit more and sellers may earn a bit more. Supplies could drop significantly, causing gold prices to rise sharply. Over the long term, tastes may change, the price of gold could fluctuate, the market may adjust – it’s hard to say for sure.
What is for sure – gold tends to hold value. While you’ll hear a lot about the changing gold market in the coming years, don’t worry too much. Gold has been prized by jewelry lovers for centuries – as far back as 2,600 B.C. when the first price of gold is set in ancient Mesopotamia. Gold will always be a rare and beautiful treasure to someone who loves it.
Indy Facets – Everyone’s Private Jeweler
Indy Facets seamlessly blends the expertise and full service of a traditional jewelry store with the value and convenience of a personal jeweler experience. We give you the face-to-face interaction with an expert that you deserve, in a private setting where you can relax and feel comfortable. Owner/Designer Shaun Goodyear and his team have earned an excellent reputation as everyone’s private jeweler for engagement rings, custom design, investment grade diamonds, luxury Swiss timepieces, estate jewelry, jewelry repair and the highest level of customer service, available to you from an onsite, state-of-the-art Custom Design Studio and Gemological Laboratory by private appointment only. You are guaranteed a unique, fun and exciting experience without the hype, pressure, judgment or uncertainty associated with other jewelry shopping options. We schedule appointments at your convenience and are usually available evenings and weekends, too. Call 317-810-1665 for your private appointment or schedule online, IndyFacets.com/schedule/.