As gold prices surge to unprecedented levels, London’s historic Hatton Garden jewellery district is bustling with activity. With global demand for the precious metal reaching an all-time high, traders, pawnbrokers, and everyday citizens are flocking to capitalize on soaring valuations.
Among them is Jennifer Lyle, 30, who recently lost her job and arrived at Hatton Garden to sell a gold bracelet and a single earring. Watching a television program the day before had inspired her, as she saw a woman who purchased a gold coin in 1996 for £60 discover its value had risen to £550 ($676).
“That’s a good increase, isn’t it?” Lyle remarked, eager to test her bargaining skills. “I know that whatever they offer me first, I’m going to say no.”
Gold’s Meteoric Rise
The price of gold has broken records 40 times in the past year alone, according to a report from the World Gold Council (WGC). In 2024, global gold demand reached a staggering 4,974 tonnes, pushing the market even higher into 2025. On Friday, gold hit nearly $2,900 per ounce, a historic peak driven by economic and geopolitical uncertainty.
Central banks are aggressively purchasing gold as a safe-haven asset, further fueling the price surge. However, while investors are eager to buy, jewellers are facing new challenges.
Jewellery Market Feels the Strain
At Touch of Gold, a jewellery shop in Hatton Garden run by Naqash Anjum, the display cases gleam with gold necklaces and bracelets. Yet, despite the demand, rising prices have made jewellery increasingly unaffordable for many customers.
“This is like consistently increasing prices,” Anjum explained. “What was selling well before now can’t sell because it’s out of people’s budgets.”
The World Gold Council reported that while global jewellery demand dropped by 11% in 2024, overall spending still climbed by 9%, reflecting the sharp rise in gold prices. With Valentine’s Day approaching, Anjum noted that more people are selling their gold rather than buying new pieces, further shifting market dynamics.
Shifts in Jewellery Production
The rising cost of gold is also reshaping how jewellery is made. Veteran designer Tamer Yigit, who began his career in Turkey, says he no longer crafts models directly from pure gold.
“We can no longer create models in gold because it’s too expensive,” Yigit explained. “There’s a big risk that we won’t be able to sell them.” Instead, he now uses blue resin as an alternative.
As Yigit spoke, a customer entered his shop, looking to sell a broken gold bracelet and a silver coin bearing the portrait of Louis XVI. After testing the items, Yigit confirmed the gold was pure, but the coin turned out to be an alloy of zinc and copper—an increasingly common issue as sellers attempt to cash in on the market.
Investors Eye Gold as Prices Climb
Despite the price surge, some buyers see an opportunity. A young man who introduced himself only as Gilly was shopping for a gold watch, convinced that now is the time to buy.
“Gold is rising all the time, so it’s better to buy now, isn’t it?” he said.
Lyle, too, found herself considering gold as an investment. Asked whether she would reinvest in the precious metal, she didn’t hesitate.
“Yes!” she answered emphatically.
As long as prices continue their record-breaking trajectory, Hatton Garden is likely to remain a hub of trading activity, with investors and sellers alike seeking to benefit from gold’s soaring value.
