Goldsmiths struggle in soaring market for precious metals

"I've have been in the business for 40 years and I never seen anything like this," adds Allchin. "In 1979, when we had the oil shock, prices went up overnight, but that only lasted for a few months."

Investors may be enjoying their longest winning streak since 1920, with gold, which was £188 an ounce in 2001, finishing the week at around $1,780, but the high price does not reflect rocketing demand for bling. Demand for jewellery from India -- the biggest buyer of gold -- and China is strong, but in the US and mainland Europe, people are selling their gold.