Editor’s Note
As gold prices surge globally, a counterintuitive trend emerges: while new jewelry becomes more expensive, a growing number of customers are seeking out vintage pieces. This article explores the “paradoxical value” found in older items, highlighting a shift in consumer behavior amid economic uncertainty.
The jewelry section on the first floor of a Korean department store. Customers are surprised as they look at the price tags of newly released 18K gold necklaces. Prices have surged significantly this year. As of September 15, the price of gold has reached $3,641 per ounce, a nearly 40% increase compared to the beginning of the year. Meanwhile, an interesting response is emerging overseas. Customers searching for jewelry from the past are increasing in jewelry stores in New York, London, Paris, and even Japan. These are people who prefer pieces from the 1940s to the 1990s over the latest collections.
Why old products? First, vintage jewelry pieces produced in the past tend to have a high gold content. The expression ‘wearable gold bullion’ for gold necklaces or brooches from the 1960s to 1990s is not an exaggeration. At that time, gold prices were relatively low, and there was not the extreme pressure for cost reduction seen today. The uniqueness of the design is also an attraction. Vintage jewelry, reflecting styles and trends different from today’s, becomes a choice for individuality. Particularly, bold large designs from the 1980s or flexible gold bracelets are unique styles hard to find in the current market.
The decisive factor is economic logic. The prices of vintage products were formed based on the gold price at the time of their production. The recent sharp rise in gold prices is often not immediately or only belatedly reflected. This contrasts with new products that instantly reflect current market rates. This is why vintage jewelry is traded at relatively lower prices during the current period of rising gold prices.
Actual market activity is brisk. Industry tallies show that vintage jewelry transaction volumes have increased significantly in Europe and North America. Major retailers like Bergdorf Goodman and Moda Operandi are expanding their related product lines, and specialty stores in New York are considering opening additional outlets. The American luxury vintage jewelry specialist ‘Yafa Signed Jewels’ also stated that inquiries have surged since the gold price rise. Interest in past works by famous brands like Van Cleef & Arpels, Cartier, and Bulgari has particularly increased. Analysis suggests that consumers are beginning to perceive vintage jewelry as ‘true collectibles where history, originality, and craftsmanship can be owned reasonably.’
At the Las Vegas jewelry exhibition last June, the antique jewelry section also achieved record-high sales. As economic instability grows, the perspective of viewing vintage jewelry as a hedge is spreading. Combined with high-purity gold, rare gemstones, and brand history, it has become an asset possessing scarcity, story, and investment potential.
However, the domestic situation is different. Unlike these overseas movements, Korea is relatively quiet. Fundamentally, there is a significant cultural difference. In Western societies, jewelry from grandparents’ or parents’ generations is seen as meaningful heritage carrying family history. However, domestically, the perception of ‘second-hand goods’ is strong, making it difficult to readily accept. The difference in infrastructure is also considerable. Overseas, there are reliable auction systems like Christie’s and Sotheby’s, professional appraisers, and systematic certification systems. In contrast, domestically, the lack of authenticity verification or certification systems leads to low market trust. Most transactions occur on peer-to-peer platforms like Karrot Market, making it difficult to guarantee professionalism or safety. Differences in purchasing patterns also have an impact. In Korea, the preference for ‘new items’ is still strong. This is especially true for products like jewelry, which carry personal and symbolic significance. For wedding rings or commemorative items, choosing new products is common.
However, signs of change are evident. As interest in ‘sustainable consumption’ grows, particularly among the MZ generation, perspectives on vintage jewelry are changing. The environmental value of being able to own beautiful accessories without new mining appeals to the younger generation. Realistic factors are also significant. As the burden of purchasing new products increases due to rising gold prices, the need for alternatives is also growing. The growth of online second-hand trading platforms is also a positive signal. Younger generations familiar with online transactions are reducing their aversion to second-hand luxury goods or vintage items.
Goldman Sachs announced that it forecasts gold prices to reach $3,700 per ounce by year-end. The prevailing observation is that the upward trend will continue for some time. In this situation, the domestic vintage jewelry market is also facing new opportunities. However, for market activation, establishing an authenticity certification system, developing professional distribution channels, and shifting consumer perception must come first. The wave of change created by the sharp rise in gold prices has now become a global phenomenon. Overseas, the perception of vintage has changed from second-hand goods to collectibles with investment value. A paradoxical situation is unfolding where the past is more reasonable than the present. The Korean market will also join this trend someday. When that moment will be depends on changes in consumer perception.