Gold is so expensive that some jewelers are simply using less of it now
One way to avoid giving people shopping for gold jewelry sticker shock? Use less gold.
That’s a tactic you can expect to see this year as the industry that sells all that glitters faces high prices for precious metals. Gold, which is coming off a record high reached in April, is up about 40% over the past year, and the most important time for the industry—the holidays—isn’t far off.
Some designers are responding with approaches like hollow gold jewelry and gold plate. Others are making two-tone bling that combines gold and silver, or using golden-hued alternatives. (Higher-end customers, many say, are still expected to put up with higher prices for solid gold.)
“Most shoppers don’t follow the commodities market, but they feel the difference when a simple gold ring now costs double what it did two years ago,” said Karen Moran, who owns Charleston, S.C.-based handmade jewelry brand Coral Strands.
Ankur Daga, CEO of Los Angeles-based direct-to-consumer jewelry company Angara, says the rise in gold prices is driven by inflation fears, economic uncertainty and geopolitical unease.
“None of these three things, in my opinion, are likely to go away anytime soon,” Daga said.
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