What's happening with the price of gold?
by Sonja Zuckerstätter·
In recent months, the price of gold has continued to rise. This is related to the major crises that have troubled us all for several years. The increased gold price has not left us unaffected - and we have to adjust the prices of our boops jewelry. We would therefore like to explain to you what the increased gold prices are all about.
Crises affect the gold price
The Corona pandemic and the war in Ukraine had a strong impact on our economy - and they still have. We all notice it in inflation and increased consumer prices, whether for food or energy.
But the price of gold has also risen as a result of the crises: by around 60 percent in the last 5 years. For example, in August 2018, a fine ounce of gold - that's about 31 grams - cost about $1,200. Today, in August 2023, the price of gold is hovering around 1,900 US dollars per fine ounce. A strong price increase, which is also reflected in consumer prices. By the way, gold is usually more expensive the less of it you buy.
But this means: Gold is and remains crisis-proof
The steep rise in the price of gold also shows that gold is still crisis-proof. This is precisely one of the great advantages of real gold as an investment. Because in times of inflation, for example, stock prices often fall - while gold remains stable in value or even rises. This is evident not least from the fact that real gold has been a valuable commodity for centuries and has survived world wars and depressions. Moreover, unlike cash, gold cannot be reprinted at will. It is a finite resource. And that, too, ensures that gold is crisis-proof.
So should I invest in gold?
We do not recommend that you invest all your assets in gold. Because even if the trend has been rising for decades: The price of gold, like all financial investments, is subject to significant fluctuations, which can also go down in the occasional period. However, real gold is a very good addition to your portfolio to invest in a crisis-proof asset. The general recommendation is to invest around 5 to 10 percent of your assets in gold.
We have summarized the advantages of gold as an investment for you:
- Gold is crisis-proof and retains its value even in times of inflation - or even increases in value.
- Gold is a liquid asset. That means you can quickly turn gold into cash when you need to. That's quite different with real estate, for example.
- Gold behaves acyclically to many other financial investments. This means that while stocks and bonds fall in price in times of crisis, for example, the price of gold often rises. This makes gold an important investment for diversifying your portfolio.
- Gold can be bought in the form of gold jewelry and thus always carry a crisis-proof investment with you. For us, of course, this is a particularly nice advantage of real gold - because that is exactly our mission behind boops.
So the fact that the price of gold has risen so sharply in recent years can be very good news: If one has invested in gold and can now rely on the small golden safety cushion. After all, if necessary, you could turn the gold into money right now and thus also manage your own small financial crisis in the face of the major global crises.
Why we have to increase our prices
For us at boops, however, the rising price of gold also brings many challenges: Our mission to offer jewelry made from pure real gold at the lowest possible price is threatened by rising purchasing costs. For this you have to know that the biggest part of our expenses actually goes into the purchase and production of our jewelry. This is because we calculate with very low profit margins in order to make real gold jewelry affordable even for young women. At the same time, we deliberately work with small goldsmiths in Turkey and only with pure, 14-carat real gold. Therefore, it is out of the question for us to press our purchase prices - just as we do not want to compromise on the quality of our boops jewelry.
So, in order for boops to continue to survive, we are forced to increase our prices this fall. We have to keep up with the increased gold price in order to be able to continue financing boops. But don't worry: our prices will of course not rise by 60 percent!
We hope you'll continue the journey with us - because we still have a lot of plans for boops. Until then, feel free to browse our online store if you still want to grab some boops jewelry at the current prices.