Jewellery designers and collectors on rising gold prices: ‘Chaos, pure chaos’

Shoppers looking for fashionable fine jewellery have been undeterred by rising prices.

The last time gold prices rose so steeply was in April 2020, during the Covid market meltdown. Photo: Beck Jewels

When Danielle Sherman launched her fine jewellery line, Sherman Field, in 2019, gold cost around US$1,508 per troy ounce. This month, the metal hit a record high, closing at US$3,411.40, and Sherman’s prices rose accordingly. That hasn’t hurt business, she said. Her brand’s sales have almost doubled from this time last year.

Gold prices have been both volatile and rising. Investors are scooping up bars and chains, hoping to secure a future profit. Even for collectors who are driven by a love of jewellery, the high price of gold is a potential benefit. The last time prices rose so steeply was in April 2020, during the Covid market meltdown. “Whenever there’s economic or political instability throughout the world, we notice a jump,” said Sherman.

“The last month has been chaos, pure chaos,” said David Hakimian, who helps jewellery designers produce their collections through his company DEH Jewelry Solutions. “It’s affecting [jewellery] pricing dramatically.”

Price increases so far haven’t kept buyers from the jewellery they love. “The clientele is a little more affluent, and they keep buying because they see it even more as an investment,” said Laurel Stearns, a music executive who’s also been a jewellery dealer for over a decade. Swiss jeweller and watchmaker Richemont’s core jewellery division recorded US$4.2 billion in sales during the last three months of the fiscal year that ended March 31, surpassing analysts’ expectations by almost US$100 million.

All of Sherman Field’s offerings are made by hand out of solid, 18-karat gold. Photo: Todd-Selby

Since the beginning of this year, Sherman said she’d noticed that some clients were buying three pieces at a time instead of one. All of Sherman Field’s offerings — heavy chain necklaces that start at US$10,950, tassels beaded from precious stones and price-upon-request engagement rings — are made by hand out of solid, 18-karat gold. When she works directly with clients, she and her team will give them a locked-in price for 48 hours so they can think about the purchase without worrying that its price will go up.

“People are generally aware that the cost of gold is going up, and it sort of makes them want it more,” said Jenna Katz, a jewellery designer who works mostly with custom and bridal clients. Katz has always given customers a price range when they buy a custom piece from her, and is able to fold the gold increases into that. She said some clients were setting appointments as soon as possible to lock in a price for their wedding bands.

Hakimian said that right now, some designers were considering changing from using 18-carat to 14-carat gold. (24-carat gold is pure gold; 18-carat gold is 18 parts gold, six parts any other metal, and so on.) None of the jewellery designers interviewed said they were considering moving away from gold in favour of other materials.

While a client buying a US $10,000 ring probably won’t be put off by the same piece costing US$12,000, Hakimian said, “Some of the stuff that was retailing for US$1,000 or $1,500, I think it’s going to be more difficult to hit that price point.” The only way for designers to do so is to make pieces smaller or with a different, less expensive metal, said Hakimian.

Prounis offers 22-karat gold jewelry inspired by the ancient world. Photo: Prounis

Sharon Novak, a gemmologist and curatorial advisor to brands and private collectors, tells the collectors she works with that now can be a terrific time to buy gold jewellery, if they’re able to get in before houses and designers reprice, she said.

“There is a window right now, but it’s a short time frame,” Novak said. “If anything, it’s encouraged [clients] to buy up.”

Many collectors don’t mind paying more — and are taking note of the gains. Jessica Graves, a collector who writes the shopping newsletter The Love List, said, “Hilariously enough, my fine jewellery collection and my fine art collection have way more rapidly increased in value than my fiancé’s stock portfolio has.”

‘People are generally aware that the cost of gold is going up, and it sort of makes them want it more,’ said Jenna Katz. Photo: David Kitz

Both collectors and designers are open to scaling back on gold. “If next year continues like this, I’m working on different materials. I’m always sourcing vintage stones and vintage coral and [would be] trying to have gold be more of what holds it together, while remaining a very gold-centric brand,” said Rebecca Zeijdel-Paz, who designs chokers and rings featuring large gemstones set in gold for her line Beck Jewels.

“I’m interested in expanding the palette in this time,” said Ezra Woods, a screenwriter who also makes, collects and advises others on jewellery. Though he’s mostly focused on high-karat gold pieces, he said he was looking at platinum and mixed-metals as well. “Focusing on the material as the sole source of value in buying jewellery is a little bit of a disservice to the category and the artistry involved.”

Jean Prounis, who designs 22-karat gold jewellery inspired by the ancient world for her line Prounis, said that she’d had clients interested in purchasing pieces before prices increased further. “This jump is a lot,” she said. “I don’t have my business set up to change my price on a daily basis.”

The Wall Street Journal