Several Canadian jewelry brands are increasing their prices due to a surge in the demand for gold prompted by investors’ concerns about the uncertain economic future, leading to record-high prices for this precious metal. The growing interest in gold is driven by a lack of confidence in the U.S. dollar and global economic instability, prompting investors to seek a secure investment option. Consequently, the increased demand for gold has caused market prices to rise significantly, impacting jewelry makers who may pass on the additional costs to consumers.
Melanie Auld, a jewelry designer based in Vancouver, noted that they have already raised prices on certain products due to the soaring prices of gold and silver. Gold prices have recently surged to as high as $4,300 US per troy ounce, while silver prices are also on the rise, creating challenges for businesses like Auld’s.
Recognizing the unsustainable nature of the price hikes, Auld’s company has shifted its focus to using moderately priced materials like wood, leather, and stone to create statement jewelry pieces that align with current trends. Auld emphasized the importance of creativity in adapting to the changing market conditions and expressed doubts about gold prices decreasing in the near future.
Mejuri, a renowned Canadian jewelry brand based in Toronto, recently raised its prices in response to the escalating costs of gold. The company informed customers about the price increase, attributing it to the surge in gold and silver prices. Mejuri’s co-founder and CEO, Noura Sakkijha, mentioned streamlining the supply chain and enhancing sourcing practices to manage the pricing impact.
In contrast, other jewelry brands like Jenny Bird are exploring different strategies to cope with the higher costs. Jenny Bird, an online retailer in Toronto, is leveraging supplier discounts and strategic shipment planning to mitigate the effects of rising gold prices while maintaining profitability. Priti Kapoor, the company’s chief operating officer, expressed confidence in their ability to navigate the current challenges but acknowledged the industry-wide impact of the unprecedented gold prices.
Reena Ahluwalia, another Toronto-based jewelry designer, highlighted the importance of adapting to the evolving market conditions by exploring innovative approaches like using lighter-weight gold and incorporating colored stones in designs. She emphasized the enduring demand for gold in the industry and the necessity for businesses to evolve in response to the changing landscape.
Gold’s reputation as a safe haven asset during economic uncertainties has contributed to its price surge, with the trend escalating as U.S. President Donald Trump implemented global tariff measures. Institutional investors closely monitor gold futures, influencing the spot price and making gold a pricier investment for jewelers. The finite nature of gold, coupled with increased central bank acquisitions and retail investor interest, has further fueled the surge in prices, leading industry experts to anticipate continued upward pressure on costs.