Jewellers have been accused of profiteering from the war in Ukraine, by using rising gold prices as a sales tactic to pressure young lovers into buying rings at a higher cost.
The price of gold has risen to £1,460 ($1,900) an ounce after London’s market suspended the sale of Russian bars. The precious metal has risen nearly 11pc in value since the start of February, from £1,318 an ounce, as investors have flocked to so-called “safe haven” assets since Russia’s invasion.
However, jewellers in Hatton Garden, London’s centre of diamond and jewellery trade, have been accused of excessively raising prices and using pressure selling on the back of the war.
John Myers, a jewellery salesman, said this was a typical sales tactic and that while there had been large increases in the price of gold, it was “nothing customers should worry about too much”.
“It is all wits and wagers in our business. It is a sales tactic that some use because it can be enough to make you want to buy straight away rather than later, in case the price goes up a lot,” he said.
Last week America banned the import of Russian diamonds and Alan Cohen of London Diamond Bourse, a diamond exchange, said the market was strong but prices for the precious stones had not jumped up dramatically.
“I wouldn’t say price rises have accelerated for diamonds. A lot of diamonds do come from Russia but the UK doesn’t really get its supply from there,” he said.
Smiths Jewellers in Nottingham has used the conflict in Ukraine to coax people into selling their precious items. Posting on social media website Facebook, the owner Mr Smith said those who pawn their goods could earn hundreds of pounds more as the price of gold fluctuates during the war. He posted that customers should cash in and that high payouts could stimulate the economy.
Hannah Ovadia, of Ovadia Jewellery, a Hatton Garden jewellery shop, said prices had been increasing since the war began, but estimated gold jewellery had gained 15pc to 20pc in value since the war started, while diamonds had increased in price by 10pc.
She said: “Russia has affected it because a big supply from the country has stopped, so prices have gone up like crazy, week on week.”
Barry Sullivan, of Jewellery Advisory Services, said diamond prices had risen, spurred by a shortage of rough diamonds. “I just bought two one carat matching diamond earrings. They were £21,000 a week ago and according to the new international prices, they are now worth £26,000,” he said.
The number of people buying gold for the first time has soared to levels not seen since the start of the pandemic, BullionVault, the world’s largest online investment service for gold.
Smiths Jewellers did not respond to requests for comment.
