New Chart Guides Wedding Ring Purchases

Australian jewellers are facing significant changes in the wedding ring market due to fluctuations in gold prices. Recent geopolitical tensions and economic uncertainties have caused gold prices to soar. This has profound implications for both retailers and consumers in the jewellery sector.

Surging Gold Prices Impact Wedding Ring Purchases

In 2025, gold prices experienced a remarkable increase of 64%, marking the largest annual gain since 1979. This rapid escalation has had a ripple effect on jewellery pricing and consumer preferences. Timothy Sung, director of Janai Jewellery in Melbourne, highlights the challenges posed by unpredictable gold price surges.

Current Prices and Consumer Trends

• Gold reached an all-time high of over $US4800 ($7000) per ounce.
• Jewellers are adjusting prices frequently to account for rising costs.
• The demand for engagement rings remains steady, with Janai selling around 300 rings each month.

As consumers adapt to the rising costs, there’s a noticeable shift towards less gold in jewellery. More buyers are opting for lower carat options, such as nine or 14 carats, over traditional 18-carat gold. Additionally, styles are changing; narrower male wedding bands of 4.5 to 5 millimetres in width are gaining popularity.

Challenges for Retailers

Jewellers like Talitha Cummins, founder of The Cut Jewellery, express concern about their profit margins. Higher gold prices have often meant that prices for jewellery can increase significantly from the time of a quote to the purchase time, creating a notable burden for retailers who must remain competitive.

• Some customers are purchasing only a pendant, opting to use existing chains.
• The rising costs have discouraged some consumers from buying gold jewellery altogether.

Looking to the Future

The outlook for gold prices remains uncertain. Economic analysts, including Shane Oliver from AMP, predict continued volatility influenced by global tensions and domestic issues in the US. While prices could potentially pull back, the overarching trend is expected to remain bullish.

Retailers are preparing for ongoing challenges as they navigate this fluctuating market. As prices rise, it is clear that jewellers must remain agile, adjusting their strategies to meet changing consumer demands while managing costs effectively.