When it comes to gifts for special events such as weddings or birthdays, gold jewellery remains the top choice in many cultures.
But with the price of gold up around 70 per cent in the last five years, more people are torn between selling such items to make ends meet or keeping them for sentimental reasons.
Jeweller Danny Georgakopoulos says people once only wanted 18 carat gold — and the more carats the better.
"If you told an older Italian or Greek lady to give them something that's not 18 carat, it's like you're swearing at them or you're cursing them. So they get their back up a bit. But that's what's changed now," he tells SBS News.
Customers are now going for lower carat gold because price of the precious metal has gone up — a lot.
Danny Georgakopoulos says customers are now opting for lower carats of gold because of high prices. Source: SBS News
His shop, Aurea Designs, caters to many people of Greek and Italian background and sits on Homer Street in the Sydney suburb of Earlwood — a bit of a hub for wedding dresses, baptism outfits or jewellery for these occasions.
Around 22.3 per cent of Earlwood reported Greek ancestry in the 2021 census — way above the national average.
"It is a bit of a wedding and Christening hub here. So I do sell a lot of crosses, We do a lot of wedding bands, a lot of engagement rings," Georgakopoulos says.
Then there's the classics — thick gold chains.
Beyond hip hop culture where they remain an enduring favourite, they have a long history, with ancient Greeks, Egyptians, Romans and many other cultures once valuing this look.
While the style went out of fashion in recent years — in western countries at least — it's now back in vogue, but only for those who can afford their hefty price tag.
A rich history
People's love of gold dates back a long way.
From 5000 BC the Egyptians used gold found in the bed of the Nile River for adornment, while it also featured heavily in ancient European, Middle Eastern and South Asian cultures — among others.
The question, though, is why do humans in almost every part of the world love this shiny metal so much?
Professor Nitika Garg, a researcher in consumer behaviour at UNSW in Sydney, has some answers.
"It's cultural and traditional, how we have attached value to gold, not in just in terms of the actual value of the asset, but in terms of emotional value where it's considered from everything from good luck to a symbolism of wishing the best to your close family and friends on occasion," she says.
"There's also research that humans have over time evolved to sort of get attracted towards jewels and gold, which just because it gives them that assurance, it's an asset, it's a resource.
"And just with water, food, these assets have over time evolved to hold meaning for us."
What's behind gold's price rise?
Experts say geopolitical factors, global unrest including fears of inflation fanned by the threat posed by US President Donald Trump's tariffs — just some of the reasons.
The World Gold Council says central banks are also buying up gold at eye-watering rates, and investors tend to see it as a safe bet in difficult times.
The Council says in 2024, jewellery accounted for about 50 per cent of total demand, central bank reserves around 20 per cent, electronics and Industrial around 7 per cent, medical and dental about 1 per cent.
While demand for jewellery has dropped due to the price, it still retains strong cultural value in many parts of the world.
Trading.Com's Australian CEO Peter McGuire says substantial populations of people buying gold in countries like Japan, Malaysia, and China has affected the price.
He says when you consider the cultural value of gold in "Bangladesh, India, Pakistan, and the Middle East, and you've really captured again the best part of probably 2 billion people".
"It's a big store of value, certainly in the likes of India. It's very much a part of their culture, their heritage, and certainly their belief as far as a store of value."
Jewellery for Diwali, special events
Holding a baby about eight or nine months old with a mop of thick dark hair, Ajay and his partner are shopping for jewellery in Harris Park in Sydney, at one of several shops in the area.
"It's a ritual for us to be honest on festivals and occasions. And a kid is born, we buy gold Diwali at the Festival of Lights. We buy gold and we put that in for temple as well. For worshipping as well. Yeah, it's quite a product."
The owner of Akshara Jewellery, Akshaj Sharma estimates that about 90 per cent of its customers are from South Asia.
Professor Nitika Garg says the skyrocketing price of gold is putting a lot of pressure on India's middle class.
"I have family and friends in India, there is still the expectation if it's a marriage of your daughter or your son, you are expected to make jewellery for them or give jewellery to the other party," she says.
"So there is pressure, and it is obviously hurting the middle class more because they don't have quite the give — the very poor have no options and the very rich have too many options."
Sharma says there has been an increase in the number of people coming into the shop to sell rather than buy.
About 90 per cent of Akshaj Sharma's customers are from South Asia. Source: SBS News
"People can't afford to live, so they just start selling off all jewellery that they have from generations ago. We get a lot of that."
Vince is an Australian of Turkish ancestry — another culture that values gold as a gift.
"I had a thick chain that I bought when I was a bit younger, but I was hanging onto, it was about a hundred grams so it was a bit of a medium-sized chain. So yeah, I sold that about six months ago," he says.
He got just under $10,000 for it.
Emotionally I did have to think about it a couple of days on and off over a short period of time, but I wasn't wearing, it was sitting in the drawer and yeah, I needed the money, so I ended up getting rid of it
Vince says that, in Turkish culture, gold remains an important gift, particularly at weddings and births.
It is also considered a valuable asset — a kind of backup plan in hard times.
At weddings guests are also expected give gold coins or jewellery as wedding gifts.
Vince says that can be too much for some people — who may choose to avoid these celebrations all together.
"They're going through hardship and they make up some kind of excuse to not turn up."
Gold recycling the way of the future
Georgakopoulos is seeing an increase in people recycling old jewellery rather than purchasing something new.
"Instead of buying a new piece outright, they're bringing in their heirloom jewellery. So stuff they've had passed down some, they've had it for years and they're either using their gold, so they're incorporating the gold into something new."
The World Gold Council says mine production accounts for the largest part of global gold supply — typically, 75 per cent each year with the shortfall made up from recycling.
Amid the cost of living crisis, many are opting to sell heirloom gold jewellery. Source: SBS News
The group says these mines are a major source of pollution with few taking steps to avoid further environmental damage from gold mining.
Various studies say that gold recycling could meet the world's current gold needs with less need to resort to mining.
Researchers at Oxford University say about one-quarter of annual gold demand is already supplied through recycling and could be increased with strategies such as blending with other metals.
They also say moves for more responsible and sustainable gold extraction methods should be a priority for mining companies.
