Going, Going, Gold
Going, Going, Gold
by Elizabeth Talbot
We are all familiar with gold. We may even own a little, perhaps by way of a wedding band or a tooth filling. But what actually is gold, what contributes to its value and why is it breaking market records in 2025?
Gold is a chemical element, a dense lustrous yellow precious metal, represented as (Au) on the periodic table. Gold has several qualities that have made it exceptionally valuable throughout history. It is attractive in colour and brightness, durable to the point of virtual indestructibility, highly malleable, and usually found in nature in a comparatively pure form. Its place in history is unequalled by any other metal because it has been perceived as valuable from earliest times.
There are many and varied reasons behind gold’s enduring value. Gold is valuable because it is perceived as a symbol of wealth, power, and majesty and itself has been a highly coveted, even worshipped, material over the ages. Gold is rare and difficult to find and mine, but it has the admirable qualities of being malleable, durable and non-corrosive. Its visual beauty and appeal have meant it has been crafted into jewellery and personal adornments for nearly 5,000 years, and such important artefacts have always represented status. Throughout human history gold has also been used as a trusted means of exchange across the world, helped both by the fact that there is limited supply and that it is indestructible. That it is recognised and trusted internationally in this way gives gold an important economic role as a means of exchange should currency collapse. It represents a store of value and provides investment opportunities. What’s more, the scope of its versatility, in the modern world as well as in the ancient world, means it remains highly sought after as a commodity, and today it has many, many applications including in electronics and dentistry, and for medical tools, as well as in the defence, aerospace and automotive industries.
Economic and political instability increase demand for gold, by banks, governments and individuals and as it cannot be printed like currency or created out of thin air, its scarcity and permanence have made it the perfect hedge against currency devaluation or inflation and economic instability. What’s more, its value tends to rise when confidence in other financial assets declines, particularly during periods of high inflation, economic uncertainty, or geopolitical instability. With multiple international conflicts, wars raging and a catalogue of economic stresses testing the markets in 2025, this year is witnessing record hikes in the price of gold.
Gold has often served as a sort of insurance against extreme market events and systemic risks that could impact traditional investment portfolios. Gold's physical nature and its 5,000-year history as a store of value make it uniquely suited to satisfy this deeply rooted human instinct for security during turbulent times, and this is what we are currently witnessing. Gold is providing a psychological anchor, thereby experiencing increased demand when other assets are deemed less reliable, and gold prices are increasing precisely when the value of other investments may be falling.
This spells good news for anyone with gold to sell, as Lisa West, specialist Jewellery valuer at TW Gaze Diss Auction Rooms can testify. “I monitor the gold market every day as part of my job, but in recent weeks prices have been changing dramatically within the day, which has been very interesting to watch. An international political announcement on the news can have a speedy impact on the gold market and this in turn alters potential auction values and is reflected in the advice I give to clients. Whilst there have been fluctuations, overall recent gold prices have reached £2,496.77 per ounce on 3rd June
Lisa’s next Jewellery auction will be held on June the 10th and it contains many lots of gold jewellery from around the world, with various levels of purity, expressed in carats or karats, including some Arabic gold.
Fully illustrated catalogues will be posted on twgaze.co.uk. However, Lisa’s preparation of auctions is continuous, so if you are interested in consigning gold and jewellery for sale at auction, please contact Lisa for valuation advice. L.west@twgaze.co.uk.
