Gold is Up: What Does This Mean for Jewelry Prices? 

February 2, 2018 | By | Reply More

22k solid gold mens cross pendantGold has taken an upturn in the last 12 months. As of February 1st, 2018, gold was 1341.35 (2nd London Fixed). This is up slightly from last year 1,209.90. That’s an increase of 131.45 in one year. As a jeweler, I don’t like fluctuating gold prices, especially when that change is trending upwards, as it effects our bottom-line and margins, unless we take the dreaded step of increasing our jewelry prices (something we don’t like doing unless absolutely necessary). Increased prices can mean less sales as less people are able to afford higher-priced jewelry and does not necessarily always translate to higher profits when sales do occur.

– Featured: 22K Solid Gold Men’s Cross Pendant from Apples of Gold Jewelry. This is a fully solid men’s cross (also available in a women’s version). –

But, still, the increase is not too significant at this point, so Apples of Gold Jewelry has not changed or increased our jewelry prices in the last several years. Our prices have been stable, even though gold prices are up about 10% since this time last year. With jewelers often basing their jewelry on keystone pricing, this can sometimes mean a 20% increase in jewelry prices. But we have taken into account a 10% buffer in our prices to account for such a day as this. While our margin may have shrunk some percentage points, it’s important to us that we don’t pass this cost onto our customers, unless there is a more significant change in the market. If gold prices continue to rise, we will have to do a conservative increase to adjust for it, but we are hoping gold will return to the $1,200 mark or even, better yet, dip down to between $800 – $1,000 per ounce which is a sweet spot for jewelry retail prices. Those days appear to be long gone, however, as gold has been stable in the $1,100 – 1,200 range for many years now.

2 years ago, on February 1, 2016, gold price per ounce was $1,131.00 (about a 9.3% increase from the year before). But in 2015, February gold prices was $1,274.35 (so back up to the $1,200 range, where it’s been for some years now).

So when do gold prices effect jewelry retail prices (at least at Apples of Gold Jewelry)? It really depends on the jeweler and how thin or padded their margins are. If prices rise above 10% and stay there consistently, that would be the time that prices may also increase around 10% also to recover lost margins. As for now, any established jewelry items in our store will remain priced as they are for the most part (this includes approximately 10,000 jewelry items currently listed at Apples of Gold Jewelry). New jewelry items, however, may be more effected, as we are pricing new jewelry items based on current gold prices. All in all, Apples of Gold Jewelry customers will not see increased prices @ this point. However, if gold continues to trend upwards over the next quarter, a modest increase may be appropriate.

6mm miami cuban link bracelet 14k gold

Featured Above: 14K Solid Gold Miami Cuban Link Bracelet for men from Apples of Gold Jewelry.

As a value-based jeweler whose goal is to provide the same high quality jewelry as traditional jewelry stores, Apples of Gold continues to regularly evaluate pricing on our jewelry to provide the most affordable jewelry prices on the market, without compromising the quality of our jewelry selection.

Category: Applesofgold.com News, Gold Jewelry, Jewelry Trends

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