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Gold Price Predicament

With gold exceeding $5,100 an ounce, Jessica Zerega feels the sting of its price in her company’s jewelry.

“Average Unit Retail is increasing but units are decreasing,” says the merchandising director at Goldstar Jewellery. “So, people are buying, just buying less units.”

That’s the reality for many in jewelry given gold’s wildly fluctuating prices. Demand for it remains, though, leaving some manufacturers to reduce their own margins to remain competitive and others to make cost-conscious gold styles (think gold fill).

Goldstar Jewellery

“Between constant changing tariffs and extreme fluctuations in gold markets, 2025 was a year like no other,” continues Zerega. “In 2026 we are working to be more innovative and creative focusing on updating basics and classic styles versus introducing extreme trend styling. Customers are looking to invest in pieces they can wear forever with increasing retail [prices]; they are playing less with the fun and flirty trends.”

Eric Lux, president of Rembrandt Charms, says retailers are telling him that clients see the higher prices but they’re still shopping.

“Consumers are still willing to invest in gold when the piece carries emotional significance,” he confirms.

For price-conscious shoppers, manufacturers have plenty of ways to keep a lid on gold costs. For starters, removing J-backs and scooping out some gold where possible has been a request for some of Goldstar’s clients.

“With the price of lab diamonds, we can add more diamonds down the shank of our rings, which decreases our gold weights,” adds Zerega. “Same with hoops, adding diamonds inside and out, hits a lower gold weight than the solid back versions.”

ALTR’s lab-grown diamond jewelry products keep the precious metal prices under control by using the lab-grown diamond itself, such as its single diamonds cut into letters. Those are the design focal point versus the gold, which is evident only in utilitarian components such as prongs and chains.

Desirable lighter weight pieces are another tool. Some of Kama Jewelry’s technology reduces metal weight without compromising durability, and ODI / Original Designs also has some cool tech-enabled options.

“Our trend-driven, minimalist-style Wisp collection uses gold wire to create designs that are lightweight but strong,” explains Valerie Fletcher, vice president of design and product development.

And while many jewelers don’t like to offer anything lower than 14k gold, the rising price of the material is driving some to offer 10k gold options. That’s the case for Kama Jewelry and Quality Gold, but mixed-metal designs like silver and gold make more sense to many. It’s a look produced by many, including ODI / Original Designs, which has moved “heavily into mixed metal products, like silver with elements of gold, or vermeil, which is sterling silver plated with 2.5 microns of gold,” explains Fletcher. “Both of these options allow customers to choose 100% precious metal jewelry at accessible price points.”

It’s a similar story for Kama Jewelry.

ODI / Original Designs

“We are seeing increased interest in alternative material combinations,” explains Simran Shah, vice president of sales and company principal. “We are developing fusion designs that combine gold with gold-plated silver and titanium elements to achieve contemporary aesthetics and accessible pricing.”

And to keep increasingly more valuable gold jewelry protected, Jewelers Mutual urges clients to keep appraisals current with updates every two years.

“Understanding how market fluctuations affect replacement costs helps customers make informed decisions about protecting their jewelry,” explains Bryon Nelson, chief product and analytics officer. “Adjust coverage accordingly to help ensure each piece is properly protected.”

 

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