May 7th 2025
What's Going on with Gold?
By Charmco
The Gold Standard
Gold may be timeless, but its price is anything but static. If you've been paying attention to the headlines—or shopping for fine jewelry lately—you've probably noticed gold is more expensive than ever. At Charmco, we believe in transparency, so we wanted to break down why prices are rising, what it means for your jewelry purchases, and how we're responding as a small business dedicated to craftsmanship, quality, and fairness.
Why are gold prices rising?
The short answer is we are living in a time of significant economic and geopolitical instability. The long answer is more complicated. During unstable geopolitical times, investor confidence wanes, causing currency values to drop. Think inflation—when inflation goes up, the power of the local currency (the US dollar) goes down. Gold is considered a hedge against inflation, so more people pivot to buying gold. For example, over the past five years, central banks have been anticipating these tensions and increasing their gold reserves, which, in turn, increases demand, thus spurring the classic supply vs. demand scenario. It's also important to note gold is a finite resource and cannot be replicated in a lab. Lastly, gold is used in several industries other than jewelry. Industries such as dentistry, electronics, and aerospace all use gold. As these industries evolve and grow, so does their demand for and use of gold.
Is gold a safe haven for wealth?
Absolutely—and not just in the eyes of investors. Gold has long been trusted as a safe-haven asset, holding its value through economic ups and downs. In times of uncertainty, like during trade wars or rising inflation, investors often shift toward stable assets like gold. For jewelry lovers, this means your favorite gold pieces are a tangible way to preserve wealth. Unlike trends that fade or items that depreciate, fine gold jewelry remains a lasting store of value you can wear and enjoy.
Is gold a smart investment?
Yes and no. An investment means spending money to achieve a profit or material result. If you do not plan to sell your gold at some point, it's technically not an investment. That said, gold is typically referred to as a wise "investment" even if you do not plan to sell it because of the lack of historical drop in value. Unlike, for example, buying a car, which most people joke loses value the second you drive it off the lot, fine jewelry tends to retain or gain value as time goes on. For us jewelry lovers, we can buy gold charms and jewelry with confidence, knowing the price we pay now is likely the lowest price these pieces will sell for moving forward. The charms you bought just last year have already increased in value. There are very few, if any, comparable markets where consumers can purchase such stable assets.
Will gold prices go back down?
While gold prices fluctuate daily, it is extremely unlikely we will see gold prices go below $3k/ounce in our lifetime. In fact, gold is expected to hit $5k/ounce by 2030. The only way for gold to see a significant drop would be if all the central banks and large holders of gold flooded the market and sold all their assets simultaneously, which is, while not impossible, highly improbable.
Will Charmco be raising prices?
At Charmco, we're committed to keeping our prices as accessible as possible while upholding the quality, craftsmanship, and service you expect from us. Because gold and production costs continue to rise, we do occasionally need to adjust our prices, but only when absolutely necessary. These small increases help us maintain our standards, pay fair wages, and continue offering thoughtfully designed, heirloom-quality charms. Since we're a direct-to-consumer business, there's no middleman markup—just honest pricing for meaningful pieces.
Good as Gold
While we can't control global markets, we can promise to keep you informed and treated fairly. At Charmco, our goal is to help you build a meaningful charm collection that brings joy today and holds value tomorrow. Whether you're buying your first piece or adding to your growing charm bracelet, you can feel confident knowing you're investing in something that's both beautiful and lasting.
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