Heather O’Sullivan, co-owner of the Tralee-based John Ross and Sons jewellers, says it’s a “great time for savvy customers” as many predict gold’s historic price increases to continue this year.

Gold recently breached $5,000 an ounce for the first time in history and, despite a major correction from highs of over $5,500, has remained at record levels.

The 64pc increase in the price of gold last year is the biggest annual increase since 1979 and is over double the rise seen in 2007 in the run up to the housing crash.

“The increase in the last six months has been phenomenal. If we even look back a year ago, it’s more or less doubled. I mean who would have thought,” said Ms O’Sullivan.

“When times get bad gold goes up…it eventually goes back down to some semblance of normality but never all the way back down.

“They say anecdotally in the jewellery business that certain markets are buying the gold. China is buying a lot of the gold and India is buying a lot.”

Due to gold’s dramatic price changes, Ms O’Sullivan said prices in the shop were struggling to keep abreast of market increases.

She said a recent customer had bought a necklace for €629 and when the shop looked at restocking the item, they found the new cost to be over €1000.

“We get very shocked ourselves, I have ideas in my mind about how much things cost but I now have to adjust my thinking. Things have changed and now there’s a new price,” she said.

“I think this is happening across the board now. Where would you go out and buy a new car for under €20,000? It’s not just in the jewellery business…everything seems to be going up all the time.”

“Let say you’re getting married this year, it’s far more in your interest to shop now. They’re only predicting the gold price to go up throughout the rest of the year.”

Gold is traditionally seen as a haven in periods of crisis or uncertainty and demand has been at a sustained high. Many also see the rare metal as a hedge against inflation which is a worry for investors, given the US Federal Reserve’s triple rate cut last year.

Billy Nolan, owner of Nolan and Hilsers Jewellers in Tralee, said the gold hikes were “disappointing” and were affecting the margins of the business.

Having been in business 60 years, he reflected on market highs of the 1980s, when gold surged to over €600 (adjusted for inflation that’s over €2,600) and then fell to around half of the high by 1982.

He said the 1980s were “very good” for business while the current market made life difficult for both the jewellery seller and consumer.

“It’s disappointing because we’d like to be selling more up market but it’s not as affordable as it used to be,” said Mr Nolan.

“I feel sorry for people who are trying to buy and it now being so costly.”

Funded by the Local Democracy Reporting scheme