Editor’s Note
This article highlights how record-high gold prices are forcing independent designers like Presley Oldham to postpone new collections and rethink their business models, illustrating the tangible impact of volatile commodity markets on creative industries.
Presley Oldham had been planning his fine jewellery debut for more than a year, finally ready to expand beyond the colourful pearl and beaded glass necklaces that have been his brand’s signature since its launch in 2020. But then, this spring, the price of gold started creeping up. Then climbing. Then soaring.
Unable to take on the overhead cost of solid gold, which hit an unprecedented rate of $4,000 per ounce last week, Oldham postponed his plans, opting instead to offer a make-to-order option for a limited range of items in gold, which will launch this fall.
The recent surge in gold — and more recently, silver — prices has become a major challenge for jewellers across the spectrum, from small independent designers like Oldham to global giants such as Signet Jewelers and Pandora. As gold continues to reach record highs, brands are being squeezed by rising production costs that threaten already thin profit margins compared to handbags and ready-to-wear.
Large multinational jewellery retailers have the option to “hedge” against the risk of fluctuating commodities prices by using financial contracts called futures, which can lock in prices for yet-to-be-made upcoming purchases. If jewellers expect prices to rise, they can go long on futures, agreeing to buy the metal at a fixed rate at a later date. If they already hold large inventories and fear prices may fall, they can short futures to safeguard the value of what they own.
But smaller jewellers lack the resources for this kind of financial engineering. Labels like Oldham’s must rely on more creative solutions to mitigate the impact of higher costs of gold, such as reducing karat levels, using alternative materials and offering shoppers a transparent explanation for price increases. Many fine jewellers are now swapping gold with sterling silver, gold plating, silk cords and glass, bolstered by the expanding parameters of fine jewellery as consumers broaden their own definition of luxury.
For others, spiking gold prices don’t necessarily mean a reduction in demand. In fact, as the value of gold increases, the consumer perception of the value of gold jewellery increases too — a key driver of the category’s growth in the past year. Moda Operandi, for instance, is expecting its biggest year ever in jewellery sales, according to director of accessories Ryan Kleman.
Gold and now silver prices are surging due to a mix of economic and geopolitical pressures that have rattled global markets. Gold has long been known as a “safe-haven” investment, a lower-risk asset than equities and bonds during times of uncertainty. Donald Trump’s introduction of tariffs this spring kicked off the rally; the ongoing US government shutdown supercharged it.
The decline of the US dollar has been another major catalyst. Because gold is priced in dollars, a weaker greenback makes the metal cheaper for foreign buyers and therefore pushes demand higher. US inflation and anticipated interest rate cuts make commodities investments even more compelling, as the buying power of currency decreases.
These factors combined first compelled a burst of central banks and institutional funds around the world to diversify into gold in the spring, but in recent months, retail investors have also flooded into the space, pushing the price of gold and silver to record-breaking highs.
In other words, it’s investment in gold futures and bullions (physical bars of gold) that pushed prices up; the amount of gold manufactured for jewellery has actually fallen dramatically this past year — about 18 percent in the first half of 2025, according to Metalsfocus, a precious metals consultancy.
Some observers believe the market is due for a correction.
For jewellers, this means now might not be a great time to load up on gold supplies, even if they fear prices will continue to increase in the short term. Just like stocks, commodities can dip in value. Between 2020 and 2022, for example, gold prices fell about 16 percent.
Rather than continuing to offer the same range of gold products and significantly raising prices, many jewellers have opted to reduce the amount of gold itself.
At Moda Operandi, Kleman said he has observed a “choose your own adventure” approach to material substitutes, whether it’s downgrading from 18-karat gold to 14 karats — the most common route for fine jewellers — or adding brass or silver versions of products previously only available in gold. For example, he pointed to Juju Vera, for instance, which has products available in solid gold, sterling silver and brass.
Rocksbox, a fashion jewellery retailer owned by Signet, has seen traditional fine jewellery shoppers gravitate toward its more affordable gold vermeil offering, according to Gina Gorman, vice president of brand experience.