How do gold prices hit the Australian jewelers in 2025

While Gururajan is hesitant to trace a direct line between high gold prices and wedding jewels in the communities of southern Asia, says that many young couples attentive to the choice are choosing more minimal design.

“Gold will always have a place in the weddings of southern Asia, but the younger couples are more selective,” he says.

“They want jewels that adapt to their personal style, not only to what tradition imposes. Some are still great, especially if their parents are involved, but others choose only a few key pieces and save money for experiences or their future together.”

Because gold prices are increasing

Gold has always been seen as a strong investment strategy, but the dramatic price increases at the beginning of 2025 saw the cost of gold for honors the bowl $ 5000.

Jordan Eliseo, general manager of ABC Bullion, says that there are some factors at stake, including the slowdown in interest rates driven by the Federal Reserve of the United States last year.

“Gold tends to work very well when interest rates are loosening,” he says.

Volatility in sharemarket and cryptocurrency, as well as high inflation, have led many investors to transform into gold as a “safe refuge investment”.

Geopolitical instability in Eastern Europe and the Middle East, as well as the flip flops of the Trump administration rates, also played their parts.

It is difficult to say if the price will continue to increase, says Eliseo, but recently Goldman Sachs has increased its end of 2025 forecast for gold prices From $ US3100 to $ US3300.

Smaller rings, less carat

The increase in the cost of gold is not good news for jewelry designers.

Cushla Whiting, co-founder of the homonymous label specialized in precious jewels and rings of involvement, states that the highest prices of gold have significantly influenced business.

“He’s hitting everything for us,” he says.

While initially they have tried to absorb price increases, they are now reviewing the weekly costs to keep up with the Igorto value.

“In the first two years we have not increased our prices at all, but now it has come to the point where if we were to replace something in stock, we are actually losing money,” he says.

Nadia Neuman, a creative director of the Neuman Sydney World Jeweler, says the question of the increase in gold prices is complex.

While some customers certainly hear the pinch, others (apparently with deeper pockets) see it as an investment.

“Some love the purchase of gold, knowing that it is a wealth shop … they know that it is something they wear and have fun and then move on to the next generation as memorabilia,” he says.

But for other customers, they have brought adjustments, such as the use of a lower weight of carats or incorporate cimelium gold pieces.

Whiting and his team also started diversifying their offers, adding options of nine and 14 carats and sterling silver.

Diamond prices have decreased in recent years, which says Whiting can help “balance” for customers.

The jeweler of Melbourne Seb Brown, whose core business revolves around the gold rings, also hears the pinch.

“I always prefer to use gold as it is such a beautiful material to work with and wear – and the finishes you can get are so vast. The gold price has increased by about 40 % in recent years, so it has the price of almost everything, so it is a difficult time for businesses in general.”

The volatility and frantic nature of the market at the moment can further complicate things.

“The price of the raw material can float between the order in the production phase and the pieces produced, which means that the bottom line can be influenced by 5 to 15 %,” he says.

Silver coatings

While the prices of gold fly, the silver jewels, in particular of the bold and big variety – have returned to style. Think of the Silver bone bracelet by Elsa Peretti for Tiffany & Co, thick Bangles of Dinosaur Designs and the sculptural articles by Georg Jensen.

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“Many of our heaviest personalized pieces we offer in silver,” says Whiting. “Doing them in gold now would be only not obtainable for the most part.”

The strengthened gold pieces are also gaining popularity while the pendulum moves away from quiet and delicate jewels towards more ostentatious exhibitions of wealth.

“It is ironic that all these big gold pieces have returned to fashion because it is so expensive,” says Whiting.

Brown also noticed a greater demand for silver, who according to him gave him the freedom to create more design on a wider scale.

“Silver is an excellent option for this, because our customers can extend their budgets and design something truly unique,” he says.

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