Soaring gold prices might be good news for investors, but they’re a source of anxiety for others.
Between January and April this year, the cost per ounce of gold jumped 20 per cent, while prices have risen almost 40 per cent in the past year.
It is affecting jewellery designers and their clients, and communities where gold carries great cultural significance.
The soaring price of gold is affecting the jewellery industry and its clients.Credit: Getty Images/iStockphoto
Jenny Chiu, director of Melbourne’s Jenny Chiu Weddings, works with couples from China, Hong Kong and Japan. She has noticed soaring gold prices affect familial dynamics, particularly when it comes to settling on a bride’s dowry.
“They don’t want to be seen as belittling the bride, or the groom’s family does not want to be seen not wealthy or strong enough to welcome this bride into his family,” she says.
Some families are choosing smaller gold pieces or giving cash, Chiu says. For wedding jewellery, she’s seen some couples opt for costume or plated jewellery.
Love, protection, tradition
South Asian wedding planner and The Maharani Diaries founder Poonam Gururajan says while gold’s cultural significance varies across the continent, it’s an important family heirloom, “often with stories attached to each piece”.
“During weddings, you’ll see some brides layered in gold not just for the aesthetic, but because it’s our way of wrapping her in love, protection and tradition.”
While Gururajan is hesitant to draw a direct line between high gold prices and wedding jewellery in South Asian communities, she says many cost-conscious young couples are choosing more minimal designs.
“Gold will always have a place in South Asian weddings, but younger couples are more selective,” she says.
“They want jewellery that fits their personal style, not just what tradition dictates. Some still go big, especially if their parents are involved, but others are choosing just a few key pieces and saving money for experiences or their future together.”
Why gold prices are soaring
Gold has always been seen as a strong investment strategy, but dramatic surges in price at the start of 2025 have seen gold’s cost per ounce broach $5000.
Jordan Eliseo, general manager of ABC Bullion, says there are a few factors at play, including slowing interest rates prompted by the United States Federal Reserve last year.
“Gold tends to perform very well when interest rates are easing,” he says.
Volatility in the sharemarket and cryptocurrency, as well as high inflation, have led many investors to turn to gold as a “safe haven investment”.
Geopolitical instability in Eastern Europe and the Middle East, as well as the Trump administration’s flip-flopping over tariffs, have also played their parts.
It’s hard to say whether the price will continue to rise, says Eliseo, but Goldman Sachs recently raised its end of 2025 gold price forecast from $US3100 to $US3300.
Smaller rings, fewer carats
Co-founder of eponymous jewellery brand Cushla Whiting says soaring gold prices have taken a toll on business.Credit: Paul Jeffers
The rising cost of gold is not good news for jewellery designers.
Cushla Whiting, co-founder of the eponymous label that specialises in fine jewellery and engagement rings, says higher gold prices have significantly affected business.
“It’s affecting everything for us,” she says.
While they initially tried to absorb price increases, they are now reviewing costs weekly to keep up with gold’s soaring value.
“In the first couple of years we didn’t increase our prices at all, but now it’s got to the point where if we were to replace something in stock, we’re actually losing money,” she says.
Nadia Neuman, of Mondial by Neuman, in Sydney: “Some are loving purchasing gold, knowing that it is a store of wealth.” Credit: Steven Siewert
Nadia Neuman, creative director of Sydney-based jeweller Mondial by Neuman, says the matter of rising gold prices is complex.
While some customers are certainly feeling the pinch, others (ostensibly with deeper pockets) see it as an investment.
“Some are loving purchasing gold, knowing that it is a store of wealth … they know it is something they get to wear and enjoy and then pass on to the next generation as heirlooms,” she says.
But for other customers, they have made adjustments, such as using a lower carat weight or incorporating heirloom pieces of gold.
Whiting and her team have also begun diversifying their offerings, adding nine- and 14-carat options as well as sterling silver.
Diamond prices have fallen in the past few years, which Whiting says can help “balance things” out for customers.
Melbourne-based jeweller Seb Brown, whose core business revolves around gold rings, is also feeling the pinch.
“I always prefer to use gold as it is such a beautiful material to work with and to wear – and the finishes you can achieve are so vast. The gold price has gone up around 40 per cent in the past few years, so has the price of almost everything, so it’s a tricky time for businesses in general.”
The volatility and fast-paced nature of the market right now can further complicate things.
“The price of the raw material can fluctuate between the order being made and the pieces being produced, meaning the bottom line can be affected by 5 to 15 per cent,” he says.
Silver linings
As gold prices soar, silver jewellery – particularly of the bold, chunky variety – has been coming back into style. Think Elsa Peretti’s silver bone cuff for Tiffany & Co, Dinosaur Designs’ thick bangles and Georg Jensen’s sculptural wares.
“A lot of our heavier custom pieces we’re offering in silver,” Whiting says. “To make them in gold now would just be unobtainable for most.”
Beefed up gold pieces are also gaining popularity as the pendulum swings back away from quiet luxury and delicate jewellery towards more ostentatious displays of wealth.
“It’s ironic that all these chunky gold pieces have come back into fashion because it’s so expensive,” Whiting says.
Big and bold silver jewellery is in: Singer Doechii; Paco Rabanne’s Autumn/Winter 2025 show; French fashion designer Michele Lamy has been sporting chunky silver pieces for decades.Credit: Getty Images
Brown has also noticed increased demand for silver, which he says has given him freedom to create more designs on a larger scale.
“Silver is a great option for that, because our customers can stretch their budgets and design something really unique,” he says.
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