New Trends with Rising Costs in the Precious Metals Market

Most of us have had to pick our jaws up off the floor after watching precious metal markets rise sharply—and hold. Gold has been hovering above $5,000 and silver above $80 per ounce. These historic highs are driven by several factors, including increased demand for precious metals in technology, a weakening U.S. dollar, and ongoing global and economic uncertainty. Even so, the desire to purchase jewelry is still very much present.

I don’t believe the retail market has reached its peak yet. While many jewelry retailers have raised prices to keep gold and silver comfortably above scrap value, the full impact on retail jewelry prices may not be felt until inventories are replenished at today’s higher metal costs. Made-to-order items are likely to bring the most sticker shock, since materials are often purchased at the current market price.

Thinking back, diamonds were once almost exclusively set in gold, platinum, or palladium. In the early 2000s, we began seeing more diamonds set in sterling silver and gold vermeil. Today, we're starting to see even more vendors promoting gold-filled jewelry (a thick layer of gold bonded over base metals like brass), and stainless steel is increasingly taking the place of sterling silver in some product lines. Stores that once specialized primarily in 14k gold jewelry are now expanding into 10k gold and sterling silver collections.

But metals aren’t the only area where changes are occurring. Due to supply chain interruptions, tariffs, increased focus on mineral resources, high energy costs, human rights, and stricter environmental regulations, the availability of certain gem materials appears to be tightening—at least here in the U.S. As a result, prices for some gemstones are rising as well. Many retailers are responding by focusing more on semi-precious stones and fresh design concepts as a way to keep jewelry accessible and appealing to consumers.

For those looking to purchase higher-quality pieces with greater gold content, the resale market may be an excellent option. Searching terms like “used,” “pre-owned,” or “vintage” can sometimes uncover pieces from sellers who purchased their inventory when gold prices were lower—or who simply haven’t adjusted their prices yet.

Likewise, if you’ve had your eye on a particular piece at a retail store and the price hasn’t changed in several months, it may be worth considering the purchase sooner rather than later—rather than gambling on a potential drop in the gold market.