Editor’s Note
This article examines the recent wave of price increases by Canadian jewelry brands, linking them directly to historic highs in global gold prices driven by economic uncertainty and a search for safe-haven assets.
As international gold prices surge, several Canadian jewelry brands have successively raised their prices to cope with the pressure from rising raw material costs. Industry insiders point out that global economic uncertainty and weakened confidence in the US dollar have prompted investors to flock to the gold market as a safe haven, driving gold prices to a historic high.
Vancouver-based jewelry designer Melanie Auld stated that her brand uses gold-plated and sterling silver materials to create accessories. The current sharp increase in the prices of both key metals has significantly raised production costs, forcing adjustments to the prices of some products.
Currently, the brand has reduced the launch of high-end fine jewelry, shifting instead to designing rugged-style accessories with more affordable materials like wood, leather, and stone to align with market trends.
A well-known jewelry brand headquartered in Toronto also raised its prices at the end of September, notifying customers via email. Co-founder and CEO Noura Sakkijha stated that rising gold and silver prices have increased production costs. The brand will optimize its supply chain and design strategies to maintain competitiveness. Some best-selling styles, such as initial necklaces, have increased from CAD 348 to CAD 368; 14K gold earrings and 18K gold earrings have been adjusted from CAD 78 to CAD 98.
Another Toronto-based jewelry brand, Jenny Bird, has not raised prices yet. Instead, it is offsetting cost pressures by negotiating discounts with suppliers, adjusting shipment schedules, and reducing operational expenses. Operations Director Priti Kapoor noted:
Jewelry designer Reena Ahluwalia mentioned that some designers are switching to lighter gold or using colored gemstones to replace part of the metal to alleviate the cost burden.
Experts point out that the surge in gold prices is primarily related to increased safe-haven demand in the market. John Ing, CEO of Maison Placements Canada, noted that the gold futures market has pushed up spot prices. Additionally, central banks’ substantial gold purchases in recent years and reduced mining output after reaching a peak have further tightened supply.
