The sky-high price of gold was arguably one the biggest fine-jewelry stories of 2024, smashing records repeatedly throughout the year. Jewelry companies have experimented with strategies to combat soaring prices, such as passing costs on to the consumer, offering alternative metals, gold-plating silver, and heavying up on precious gemstones to relegate gold to settings only. Yet one thing is certain: Consumers’ appetite for gold is as voracious as ever despite — and very likely because of — the precious metal’s continued stratospheric rise. Across the board, gold remains king.
The metal hit an all-time high price in October 2024, trading at just under $2,800 per ounce and leveling out to $2,624 by year’s end. Numerous financial institutions, from Goldman Sachs to Commonwealth Bank, foresee it easily reaching the $3,000 mark by mid-2025, buoyed by lower interest rates in the US, unprecedented central-bank purchases, and geopolitical uncertainty.
“I would expect gold to return at least 20% in 2025, putting it around $3,150,” predicts Alan Hibbard, lead analyst at bullion-investment company GoldSilver.
Standing firm
Many fine-jewelry designers are sticking with gold despite the threat to profits.
“We made the choice to keep the quality and integrity of the design with 18-karat gold,” says Valeriya Guzema, owner and creative director of Guzema Fine Jewelry in Kyiv, Ukraine. “It’s hard to manage the price, but instead of using [less-expensive] materials, we’ve narrowed our margins.”
Haverhill Leach, founder and designer of jeweler Haverhill in Warren, Rhode Island, has had to raise prices a few times because of gold’s uptick. Yet sales at the brand, which focuses on personalized and birthstone jewelry in 14-karat gold, grew 65% by volume last year over 2023.
Marketing is one effective tool. Leach sent out a blast email with the headline, “Watch Your Gold Grow!” and an image of a Haverhill gold chain to illustrate the metal’s rise. “It’s nice to be transparent and educate the customer,” she says.
Gold die-hards appear split between price-conscious consumers opting for daintier, less metal-heavy pieces, and wealthy customers vying for voluminous gold jewelry no matter the cost.
“If I’ve learned anything as a designer, when the customer expects 18-karat gold, it’s really difficult for them to transition to anything else,” says Sophia Macris, creative director of New York-based brand Verragio. “Consumers see gold as an investment. They recognize its inherent value, and that value will only grow. That said, we’re always considering the weight of the piece not just as it relates to price point, but [also in terms of] wearability. Will our earrings pull on the earlobe?”
A shift in materials
Many jewelers, Verragio included, are utilizing precious gemstones to compensate for the weight of gold. “Colored stones are a nice design element that doesn’t require as much gold in wire or bezel settings,” explains Macris.
Italian maison Picchiotti is also gem- and diamond-focused in a way that mitigates the amount of gold it uses. “For us, the price of gold ends up being fairly marginal,” says marketing director Maria Carola Picchiotti, adding that 18-karat gold is every bit as much a part of the company’s DNA as gemstones and diamonds are. “Fluctuations don’t affect us very deeply.”
Other jewelry designers are pivoting to alternative metals. Varsha Diamonds offers retail customers platinum and silver in addition to gold.
“Gold has not lost its luster,” states Nick Mehta, CEO of the Los Angeles-based company. “Gold is still gold. You cannot replace gold. But we’ve sold more platinum this year than we ever have.”
Silver, too, is finding new converts of late, especially in the US. Varsha’s Color Candy collection — featuring amethysts, blue topaz, citrine, and garnet in silver rhodium and gold-plated silver for $99 to $499 — is enjoying success.
Sarah Emilie Müllertz, founder of Kinraden in Copenhagen, says silver occupies a large part of Denmark’s design legacy. Her architecture-inspired jewelry line has identical gold and silver styles; clients can buy her large Doric earrings in silver for $375, or the gold version for $5,790.
“More and more people are buying into silver,” she reports, pointing to its understated luxury. “And when they buy gold, it’s an investment.”
In a bid to offer consumers more options, New Orleans-based brand Mignon Faget widened its price range, stocking everything from sterling silver pendants for $55 to 14-karat-gold collars for $28,000. “But we have seen some crazy stuff,” relates CEO Maghan Oroszi. “We’ve sold $5,000 gold cuffs, $10,000 gold necklaces — heavy things. We have seen consumers buy now, anticipating possible future tariffs. Our average order is $100 more than last year. It’s definitely a surprise.”
Other designers have abandoned high-cost metals altogether. Capucine De Wulf relaunched her eponymous fine-jewelry line as demi-fine in 2022. Using the same craftsmanship as before, the founder and chief creative director of the Charleston, South Carolina-based brand set natural gemstones, wood, mother-of-pearl, and shell pieces in 18-karat-gold-plated brass, selling the finished products at Bloomingdale’s, Borsheims and Smyth Jewelers for $75 to $500.
“There will always be a fine-jewelry customer for gold,” she says. “But we’re seeing more and more customers buying fashion jewelry with the allure of gold. And the price is affordable enough to change looks often and won’t be devastating if you leave a piece on a plane.”
Undeterred shoppers
Meanwhile, US retailers have seen no slowdown in gold purchases. While American consumers haven’t historically viewed fine-jewelry purchases as investments the way their counterparts in other regions such as India and the Middle East have, store owners are starting to see a significant shift in that mind-set. Many shoppers are buying gold now to take advantage of its anticipated rise.
Bob Moeller, president of R.F. Moeller Jeweler in Minneapolis-St. Paul, Minnesota, educates customers about the high price of gold and hasn’t received much pushback. In fact, customers are shelling out big bucks for bridal and fashion jewelry in 18-karat gold. “They’re hedging their bets,” he remarks. “They must be expecting that inflation will continue to rise.”
Jim Tuttle’s wealthy clientele is also snapping up gold pieces. “We’re swamped up to our nostrils,” says the founder and president of Green Lake Jewelry Works in Seattle, Washington. “We don’t get many people saying no to a gold markup.” He aims for a dollar profit margin per pennyweight rather than a traditional keystone markup. As long as he gets that, he says, “I’m happy.” Labor costs in his substantial custom business haven’t risen significantly, which also helps offset costs.
Even if investment isn’t the main consideration in consumers’ minds, gold is clearly a must-have for fine-jewelry purchases, and it looks likely to stay that way.
“We don’t even discuss it,” says Mariana Hay, president of Croghan’s Jewel Box in Charleston, South Carolina, regarding gold prices. Most of her clients gravitate toward necklaces, earrings, bracelets and engagement rings in 14-karat gold, with nary a thought for alternatives. “Gold is fashionable. We’re selling more yellow gold now than we have in decades. Our sales are up 33% over last year. It’s been an amazing run.”
Main image: A selection of gold bracelets and chains by Anita Ko. (Anita Ko)
