News & Insights

"Gold keeps getting more expensive. Should we raise prices too?"
"If we use substitutes, will our brand lose its identity?"
"Is there a way to protect profit margins without compromising value?"

 

As gold prices approach an all-time high of $2,900/oz in 2025, fashion jewelry brands face tough questions. 

With costs rising, how can brands maintain product appeal, pricing power, and consumer loyalty?

Here are three essential strategies jewelry brands are using to stay competitive in this climate.

1. Rethink Materials—Maintain Luxury While Reducing Cost

 

         

                

 

Can reducing gold content still preserve brand value?

Many global luxury brands are already shifting toward alternative and recycled materials—not just to reduce cost, but also to align with their sustainability goals.

What are top brands doing?

• Cartier uses materials vetted by the Responsible Jewellery Council (RJC) and works with ethical gold suppliers.

• Tiffany & Co. increases sourcing transparency through RJC-certified suppliers and uses recycled gold and diamonds.

• Bulgari actively incorporates recycled materials into collections, adopting circular production models

 

Tactical Options:

• Use vermeil gold (18K plated over silver) for premium appearance with less material cost.

• Incorporate recycled gold or mixed metals to reduce price volatility while maintaining a high-end look.

 

Conclusion:

Alternative materials don’t diminish a brand—they can enhance brand storytelling and show commitment to innovation and responsibility.

The key is using material changes as a narrative advantage, not just a cost-saving tactic.

2. Rethink Sourcing—Don’t Let Volatility Catch You Off Guard

 

Can you buy smarter, not just cheaper?

If gold volatility persists, brands need a sourcing strategy that protects margins. It’s no longer just about price—it's about supply stability and risk management.

 

Recommended actions:   

• Negotiate contracts early, especially in volatile markets.
• Diversify your suppliers to reduce dependence on one region or source of supply.
• Consider financial hedging to protect against price fluctuations

 

Conclusion:

Volatility isn’t avoidable—but it is manageable. Forward planning can protect your production timeline and your brand reputation.

 

3. Reframe Value—Consumers Will Pay If They Understand Why

Should you raise prices? Possibly. But not without a strategy.

Raising prices without consumer trust leads to backlash. But when positioned correctly, pricing can reinforce your brand's value rather than damage it.

 

What works:

Highlight craftsmanship, uniqueness, and sustainability—not just materialsOffer tiered pricing models or custom services for loyal customersReinforce luxury positioning with limited editions or storytelling around sourcing

Conclusion:  Gold isn’t the only thing that defines luxury. The perception of quality, experience, and ethics matter just as much—if not more.

Final Insight: When Gold Rises, Brands Must Get Smarter

Now is the moment of truth.

Will you change materials, or raise prices?
Will you chase the cheapest option, or build brand value customers are willing to pay for?

 

  What smart jewelry brands are doing right now:

• Re-evaluating materials and introducing sustainable options
• Updating sourcing strategies to diversify risk
• Restructuring pricing with a focus on value—not just cost

 

“You can’t stop gold from rising—but you can decide how your brand responds.”In uncertain markets, speed matters.

The brands that adapt fastest will lead.