Gold prices remained stable on Thursday, around the historical maximum achieved the previous day, helped by the expectations of new fees in the United States and political uncertainty.
David Gris | AFP | False images
Amid the world economic turbulence, precious metals prices have been rising more and more.
The price of gold In particular it has shot over the past year, increasing more than 50%. For medium jewelry companies that seek to offer necklaces, earrings and more fine gold. At lower prices than inherited luxury jewelry brands, gold futures could be generating problems.
Although gold is usually subject to market fluctuations, investors have increased their holdings during the past year due to the fears of recession and market uncertainty, according to Goldman Sachs. The gold is on its way to its third consecutive year of two -digit profits, and even reached record levels this week during the closure of the government.
On Tuesday, gold prices reached $ 4,000 for the first time in history, and show no signs of deceleration.
UBS analysts wrote last week that lower interest rates, the weakness of the dollar and political uncertainty will continue to raise the price of gold.
“Now we hope that tickets for this year reach 830 tons, which represents almost twice our initial forecast of 450 tons at the beginning of the year,” the UBS analysts wrote in a note. “The key risk to gold is a better growth in the United States and if the Federal Reserve is forced to raise rates due to inflation -related bullish surprises.”
A Goldman Sachs report from the end of last month predicted the increase, predicting that the price of gold will increase by 6% to mid -2026 to $ 4,000 per Troy ounce, a unit of measure used for precious metals. The report classified gold buyers into two groups: buyers by conviction, who buy metal constantly, and opportunistic buyers, who are launched “when they believe the price is correct.”
Analysts said they expect central banks to continue buying gold for three more years.
“Our reasoning is that the central banks of emerging markets remain significantly underpathed in gold compared to their counterparts from developed markets and are gradually increasing their assignments as part of a broader diversification strategy,” wrote analyst Lina Thomas.
And according to data from a July Survey of the World Gold Council, approximately 95% of the central banks expect world gold holdings to increase next year.
Gold futures
This uncertainty adds to an already turbulent global economy that wobbles due to the tariff political changing of President Donald Trump. Although it made clear in August that gold will not be subject to tariffs and that Switzerland's ingots will not be subject to the 39% tariff of the country, the high rates imposed by Trump to other countries have been altering the global supply chain.
For jewelers, the increase in the price of precious metal can be a matter of concern. Great retailers like Pandora and Seal They have pointed out that they are exploring increases in alternative price increases or manufacturing methods to counteract the blow they are receiving from gold.
And some jewelry companies that intend to offer gold products at lower prices, such as Mejuri, are also feeling the pressure.
Mejuri, whose goal is to sell Gold and luxury jewels at more affordable levels than its competitors, announced last month that the company was being forced to raise its prices due to the increase in the cost of gold, silver and tariffs.
“While we have been doing everything possible to absorb the impact and preserve the quality and crafts waiting for us, you will see some price updates on Monday, September 29,” Mejuri wrote in an email to customers. “We are addressing these changes in front: rationalizing our supply chain, strengthening the supply and design taking into account prices.”
The company said it is also innovating in new products such as 10 carat solid gold to continue offering quality jewels at affordable prices. Mejuri refused to comment.
'A fear indicator'
Since the price of gold increases and shows no signs of stopping, some jewelry companies are forced to be innovative in their prices and products.
In his profit report of the second quarter of August, Pandora said he faced an impact of 80 basic points due to the highest prices of gold and silver and planned some price adjustments to compensate for those winds against. And at the Telefónica conference on Signet's most recent profits in early September, the company said it had seen an increase of more than 30% in the cost of gold.
Baublebar, who specializes in fine jewelry, offers a large selection of “semifinas” gold pieces, which, according to its co -founder Daniella Yacobovsky, has allowed the company to somehow avoid the worst part of the pressure of gold prices.
The company's semi -final jewels have a thick 18K high quality gold bath on a sterling silver base, which allows Baublebar to avoid the costs associated with solid gold jewels. Semi -final brand earrings range between $ 50 and $ 150.
“In fact, we have seen a really enormous increase in interest in semi -final,” Yacobovsky told CNBC. “I think it offers people a really fantastic alternative to solid gold … you will get really fantastic quality similar to that for a lower price.”
Even so, Yacobovsky said that it is worrying that important events that affect the global economy are happening at a greater pace than five years ago. He said it didn't seem something as volatile as the vertiginous price of gold in the industry “for a long time.”
The key, he said, will be that companies take advantage of their ability to make intelligent decisions.
For Alexis Bittar, executive director of the jewelry company that bears his name, the intelligent choice meant leaning for gold -plated parts, which allows the company to save costs compared to solid gold, and slightly increase prices to match the products that arrive.
But the company will not change the price of any of its existing products, Bittar said.
“You are constantly juggling between the tariff and the acceleration of gold prices, so you stay within a price for which you are known,” Bittar said. “From the consumer's side, they really don't care. They vaguely know that gold prices are going up … but mentally, they have an unconscious price they are looking to spend, and when you start exceeding it, you are discounting people.”
Bittar said his company is seeing a “cautious” consumer, but that any setback in spending is probably more related to solid gold than with plated gold, and that the base of rich consumers is more willing to pay higher prices than low or medium income buyers.
Even for the Rowan ears drilling company, which also offers gold jewelry, the quick change industry may be carrying problems. The executive director, Louisa Schneider, told CNBC that it is difficult to imagine any other industry whose raw material costs have increased as dramatically as gold.
Location of Rowan Piercing Studio in Suburban Square in Ardore, Pa.
Courtesy: Rowan
Because the drilling of the ear requires a certain level of surgical steel or titanium for an ideal healing, Rowan often uses 14 carat gold to cover those materials, which leaves the company “something isolated” of the increase in the price of gold because it must meet certain health and safety standards.
Even so, Schneider said that Rowan had to increase the prices of some of his gold pieces at the beginning of the third quarter, which, according to her, customers are willing to pay because the company specializes in using nurses trained for piercings.
“This is a fear indicator. That, from my point of view, is quite worrisome,” said Schneider. “Our expectation is that we do not see a significant reduction in the current price; in any case, we hope that gold will continue to be quite expensive. So we will continue covering ourselves and working very closely with our suppliers.”
Schneider said that he is seeing a “turning point” in the price of gold and that it is a matter of concern for all jewelry companies, but especially for those that cannot increase their prices to counteract costs because they sell consumers who are not luxury and that are less flexible with price changes.
Ultimately, he said that this serves as a warning sign for the economy in general, even if Rowan is not affecting too much.
“Demand does not come from consumers who want to use gold or industries that require gold as a manufacturing component,” Schneider said. “This is due to a grab of gold given the uncertainty around the US dollar, and that does not resemble anything we have seen.”
Correction: an earlier version of this story erroneously indicated Signet's sales.
