Gold prices have never been higher, and that’s bittersweet for the jewelry industry. High prices validate the perception of the precious metal while also challenging design houses to work more thoughtfully with it. Plus, many independent retailers are rethinking ways to work within the category so as not to put off price-point shoppers.

Among manufacturers, adjustments are being made in real time. Phillip Gabriel Maroof of Royal Chain maintains that his gold business hasn’t really suffered.

Ostbye

“There’s been a little shift in the weight of some pieces, but people still want chains, layering pieces, and earrings are very strong,” he explains. “The higher price of gold has made some back off from bigger, heavier pieces but has also added to the value and perception of gold. It’s worth something. Yellow gold remains strong.”

Ditto for Ostbye. Their customers notice the high price of gold but that doesn’t diminish their desire for it. “In some cases, it makes it more desirable,” says Theresa Namie, merchandise manager. “Yellow gold is in demand.”

To manage costs, many manufacturers are being purposeful in designs so as not to lose quality.

“To make something more affordable you need to lighten a design,” Namie continues. “That said, we have to look at the longevity, so cutting corners isn’t always an option. We can add more diamonds or create negative space or links so that the design still has a bold gold look but does not weigh as much. Bezel styles can also give a bolder look, so we are designing more in this style. It is important to us not to lose integrity of a design by making it lighter.”

According to Jessica Zerega, director of merchandising for Goldstar Jewellery, the bridal jewelry maker is focused on refining designs to ensure it hits the lowest gold weights possible while keeping “quality and perceived value as our top priority,” she says.

“We are designing into the footprints that we feel are on trend for our customers but working on our engineering and R&D to ensure these styles can hit competitive price points based on the market,” she adds. “Gold has affected price points across the board with increases, but we sell diamond jewelry, so it is not as impactful as in straight gold jewelry.”

Lighter weight gold designs and popular slender layerable and stackable looks are also a boon to the market now.

“Our focus is on creating designs that are lighter in gold weight without compromising on elegance and quality,” says Surbhi Jain, marketing director, SHEFI Diamonds.

“Luckily for fashion, dainty gold is on trend, so we know the gold cost is not as much of a factor as it is in bridal and anniversary,” says Valerie Fletcher, vice president of design and product development, Original Designs / ODI.

Other options to keep the look of gold at a price point include vermeil jewelry—a karat gold plating over sterling silver—and lower karat gold designs.

“We are very strong in micron plating and vermeil, and our customers are taking advantage of the opportunity to show styles that have a good sales history but are now too expensive in [solid] gold,” adds Fletcher.

Paris 1901, a division of Prime Art & Jewel, has been doing well this year with its Monte Luna line of vermeil and lab-grown diamonds.

    Prime Art & Jewel

“We launched it at JCK Las Vegas last year and it’s a popular demi-fine look,” explains Susie Wilty, director of sales.

Namie points out that earrings are among the styles being made in lower karat gold.

“We are making some, usually in earrings as those are double the gold and diamond weight,” she says. “Most of our items can be requested in lower karat gold, so we can leave that up to the retailers.”