The Current Market: Gold and Silver at Record Levels
The recent surge in gold prices has rightly attracted attention, but silver has also seen a significant rise. Although this has received less coverage in mainstream media, the increase is substantial.
To put this into perspective, the spot price of silver on 18 October 2023 was £18.75 per troy ounce. On the same date in 2025, it stood at £38.68, and reached a peak of £40.86 on 17 October 2025. The last major spike was in 2011, when prices hit £26.43. This sharp rise marks a significant shift in the silver market, and experts do not expect prices to return to earlier levels.
Gold prices have seen even more dramatic movement. On 18 October 2023, gold stood at £1,592.60 per troy ounce. Two years later, on the same date in 2025, it had almost doubled to £3,152.51, and as of 21 October 2025, it continues to rise at £3,197.02 per troy ounce.
A Global Perspective on Gold
In January 2025, the World Gold Council reported that jewellery spending had risen by almost 10% in 2024, even though the quantity of jewellery purchased had decreased by a similar percentage. Despite fluctuations in spending and consumption, gold prices continued to break records.
This surge coincided with the return of Donald Trump to the White House in January 2025, when the gold price reached £1,979 per troy ounce. The increase has encouraged many with unwanted gold jewellery to sell their items and take advantage of the market.
Robin Kolvenbach, Co-CEO of Swiss-based Argor-Heraeus (part of the Heraeus Group) and a board member of the London Bullion Market Association, explained that there are no signs of demand weakening. “In periods of crisis, the demand for 10-gram gold ingots tends to rise sharply as it is seen as a refuge placement,” he said.
At the end of 2024, the United States held around 23% of the world’s gold reserves, with 8,122 tonnes, followed by Germany (3,351 tonnes), Italy, France, Russia, and China (each between 2,452 and 2,279 tonnes), then Switzerland (1,040 tonnes) and India (876 tonnes).
Countries such as India, China, Turkey, and Poland continue to purchase gold for their federal reserves. However, private individuals have also turned to gold as a long-term safe investment — a status it has maintained consistently over the past 30 years.
How These Changes Affect Collectors and Owners
For clients, these price movements have a direct impact. Replacement costs — whether buying new, on the secondary market, or second-hand — are now much higher due to the rise in base metal prices.
While demand for domestic silver has declined in recent years, anyone needing to replace silver items could find themselves underinsured if their policy has not been reviewed within the past 12 months.
If you own a silver collection, consider how you would replace it in the event of a loss. Your current sums insured may no longer reflect today’s values.
Gold owners face similar issues. The continued rise in gold prices affects both resale and replacement costs. If you haven’t had your gold, jewellery, or other precious items valued recently, now is the time to arrange an updated valuation – particularly as diamond prices have also fluctuated over the past year.
The Jewellery Market: Rising Costs and Considerations
The ongoing price increases have also influenced the jewellery market. For those looking to remodel or upgrade unworn jewellery, the cost of gold purity is a key consideration. Choosing between 18ct, 14ct, or 9ct gold can have serious financial implications.
However, opting for a lower carat does not necessarily detract from a modernised piece’s beauty – especially if it’s set with repurposed gemstones, such as a sapphire from a family heirloom. By substituting 18ct for 14ct or 9ct gold, you can free up funds and potentially expand your updated collection.
For those who prefer not to alter their jewellery, it’s worth noting that the price of gold has increased by 920% between 2000 and 2025. This has prompted many to sell or “scrap” their gold. However, there’s an important distinction between simple gold jewellery (such as chains or gate bracelets) and collectible pieces from designers like Cartier or Van Cleef & Arpels, where value is driven as much by design and craftsmanship as by gold content.
Not all resale prices will rise in line with gold’s value. Collectible and vintage pieces have their own market dynamics and tend to reach a ceiling driven by demand rather than material value alone.
Modern pieces, however, are directly affected by metal prices. For example, the Cartier Love collection, available in white, rose, and yellow gold, sees annual retail price increases linked to fluctuations in the gold market.
Despite higher retail prices, gold jewellery remains a favourite and reliable investment for consumers – admired for both its lasting appeal and financial stability.
A Sensible Next Step
With such dramatic movement in both gold and silver prices, it’s unlikely that values will return to earlier levels soon. Owners of jewellery, silverware, and other precious metal items should review their insurance valuations to make sure they accurately reflect current market conditions.
If your last valuation was more than a year ago, an update is strongly recommended. This ensures your items are properly insured and that you won’t face shortfalls in the event of a claim or loss.
For expert advice or to arrange an updated valuation, contact Doerr Dallas Valuations on 01883 722736, email [email protected].