As gold prices rise, some popular Canadian jewelery brands are raising their prices

some canadian Jewelery brands are raising their prices as gold demand surges – driven by investors’ fears of a shaky economic outlook – market for precious metal To Record height.

With confidence in the US dollar low and uncertainty impacting the global economy, more investors are looking for a safe place to park their money. Therefore they are buying gold in large numbers, increasing market prices. jewelry Manufacturers who can then pass the additional costs on to their customers.

“There are some products that we’ve already had to raise prices for,” said Vancouver-based Melanie Auld. jewelry Designer whose name makes online business gold plated jewelry With sterling silver base.

Gold prices have become so high US$4,300 per troy ounce (a measurement used when weighing precious metals) in recent weeks after years of gradual gains. auld said ssilver prices are shooting is also happening – And this combination is not sustainable for his business.

“We’re seeing a huge increase in both the main materials we use, and I think that’s seriously impacting jewelry designers and then the consumer base,” he explains.

The company is now offering less fine jewelry – Auld says clients were increasingly turning away from it because of its high cost – and focusing on medium-priced materials like wood, leather and stone to make a weightier statement. jewelry Which is in trend now.

“I think there’s always a way to use other materials and be creative with your designs,” Auld said. He does not think gold prices will come down again.

Major raises prices, others consider their options

Another famous Canadian jewelry The brand has recently increased its prices due to high gold prices.

toronto jewelry Retailer Mejuri, which became popular for selling rings, earrings and necklaces at relatively accessible prices, emailed its customers last month to inform them of the increase.

The surge in gold and silver prices “has increased our costs,” Mejuri co-founder and CEO Nora Sakkijha wrote in an email. The company will “streamline our supply chain, strengthen sourcing and design with pricing in mind,” he said.

The company raised prices on September 29, including on several of its bestsellers. A comparison of prices between August 3 and October 17, taken from the Wayback Machine, shows the difference.

For example, the brand’s Letter Necklace, which originally retailed for $348, now sells for $368; Its 14-karat yellow gold mini hoops and 18-karat gold Dom Huggie earrings were $78, and both are now priced at $98.

Meanwhile, the big American jewelry Retailers like Signet, Pandora and Tiffany & Co. are expected to increase their prices or shift According to analysts, if they have not done so yet, their manufacturing strategy by the end of the year.

Other jewelry Brands are taking a different approach at the moment. Toronto-based online retailerr jenny bird According to Preeti Kapoor, the company’s chief operating officer, the company is relying on supplier discounts and strategically timed shipments to manage higher costs.

“We’re focusing more on keeping the jewelry intact, keeping the materials intact, and looking at other ways in our supply chain and our operating expenses to reduce costs to keep our profitability strong,” Kapoor told CBC News.

He said he was confident that Jenny Bird would be able to withstand the high price of gold. “But I’m worried about a lot of businesses because this is the highest it’s been in a very long time.”

Reena Ahluwalia, A jewelry The Toronto-based designer said she’s looking for different ways to manage costs — including using lighter-weight gold and infusing her designs with colored stones.

The demand for gold is not decreasing and the industry needs to adapt accordingly, he said. but not everyone jewelry The market is also feeling the pressure.

“What we are seeing is that in the high-end luxury jewelery market, they are able to absorb the price increases,” she said. “But it is the mass markets and wholesalers who are feeling the pressure.”

‘It’s like fire insurance’

Gold has long been considered a safe asset during economic instability. The increase in pricing began in late summer, but remained upward for most of the year as US President Donald Trump began imposing his tariff regime globally.

“It’s like fire insurance. You don’t expect your house to burn down, but you definitely want to have some insurance. And gold is a hedge against a lot of the uncertainties we face,” said John Eng, president and CEO of Mason Placement Canada, an investment banking firm in Toronto.

Most institutional investors track gold futures, which are agreements to buy or sell an asset at a set price in the future. That part of the investment market can influence the current price of physical gold – also known as the spot price – making it a more expensive purchase for jewelers.

“This impacts the factory where we are purchasing from because their costs have gone up. And they need to make sure that they are still making the same money that they made yesterday and the day before,” Kapoor said. This way the costs are passed on to businesses and then consumers.

Plus, gold is a scarce metal – and for the past few years, central banks have been buying it. collectivelyEating a large portion of the produce. jewelry The market takes another slice of that pie; And retail investors are also buying gold-related assets through exchange-traded funds, Eng said.

“So there is a lot of uncertainty, and gold is not being mined as much. In fact, gold reached its peak production two years ago,” he said. Like Auld, he doesn’t see costs coming down.

“Historically, these are very high-priced materials.”