Jewelers have increasingly been pushing items that aren’t entirely made of gold to prevent sticker shock as the precious metal hovers near record highs, The Post has learned.
Gold prices reached an all-time record $3,500 per troy ounce in April and then see-sawed between $3,000 and $3,200 in response to the uncertainty over tariffs.
They popped again on Friday to about $3,400 amid uncertainty over whether country-specific import tariffs would apply to the most commonly traded sizes of gold bars.
Jewelers have been caught in the middle, trying not to alienate shoppers by raising prices while also watching their own costs soar.
Many are now offering more gold-plated or gold-vermeil items, which contain a fraction of the pricey metal, and by also propping up silver trinkets, retailers and industry experts told The Post.
“When gold went up by 40%, it was difficult to hit the pricing sweet spot for fine jewelry,” said David Ankur, chief executive of Angara, a $100 million dollar jewelry maker and online retailer.
A classic, plain men’s gold wedding band that’s listed on Angara for between $759 to $2,469 – depending on the metal type – would have cost 25% less six months ago, Ankur said.
The preferred price point is $750 to $1,500, but with an ounce of gold costing double the upper end of that range, those items can now cost nearly $2,000.
In response, Angara in June launched a line of mixed metal pieces that are mostly made from sterling silver with hints of gold “so that we can hit that sweet spot,” Ankur said.
Even jewelry giant Pandora, which specializes in budget-friendly plated metal charms and other items, can be too expensive for some shoppers.
Donna Thompson, who was visiting the Big Apple from the United Kingdom, recently walked out of a Pandora store on West 42nd Street empty-handed after eyeing a 14-carat, gold-plated bracelet priced at $200.
“The prices here are more than double what I can get at home,” she said.
Signet — the largest jewelry company in the US with chains that include Jared, Zales, Kay and Blue Nile — has also started peddling gold-plated and gold vermeil.
Gold-plated jewelry has a thinner coating over any type of metal, including brass and nickel. Gold vermeil is typically a thick layer of gold over sterling silver.
“We are testing products like gold-plated pieces, but it’s not a large part of our overall offering yet,” a Signet spokesperson said.
Surging gold prices have contributed to a 10% price increase in Signet’s fashion jewelry, the company said in its most recent earnings report.
This year, Zales stores set up a separate display by the cash register of designer, gold-plated jewelry that isn’t under lock and key.
The so-called Whimly collection starts at $30 for 18k, gold-plated bracelets, necklaces and earrings that are made from sterling silver, said Nikki Von, the manager of the Fifth Avenue Zales store at East 38th Street.
Zales stores have always offered a small collection of gold-plated items under their glass cases, but the jewelry has never been so prominently displayed.
The chain has been testing the concept this year to offer more affordable items that customers can “touch, feel and try on” without a sales rep hovering over them, Von said.
Another Signet-owned retail brand, Rocksbox, is using more gold vermeil in its designs to give customers a “more accessible price point,” senior vice president of merchandising Heather Kersten told The Post.
“Gold prices are definitely a consideration for the industry right now,” she said.
Jewelers that cater to customers on a fixed budget have to be clever about selling their merchandise, added Paul Ziminsky, a diamond industry analyst and consultant.
“You will see more jewelry designs aimed at creating an allusion of more gold than there actually is,” he said.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
