The price of gold has surged dramatically, crossing a key psychological threshold and impacting jewelers and consumers across the Canton of Bern. This rise has led to higher costs for gold jewelry, prompting shifts in consumer buying habits and presenting challenges for local businesses.
Key Takeaways
- Gold prices have increased by approximately 37% in the past year, reaching over 105,000 francs per kilogram.
- Consumers are shifting away from solid gold, opting for silver, platinum, or simpler designs.
- The cost of large diamonds has decreased, offering an alternative for luxury buyers.
- Local Swiss craftsmanship remains a strong selling point for jewelers despite rising material costs.
- Banks in Bern are observing increased gold trading activity, with some clients selling and others buying for investment.
Gold's Sharp Rise Reshapes Consumer Choices
The precious metal's value has seen an unprecedented climb. Over the last twelve months, gold has become significantly more expensive, with a kilo now costing more than 105,000 francs. This represents a substantial increase of around 37 percent.
This sharp upward trend directly affects the price of gold jewelry, including rings, earrings, and necklaces. Jewelers in the Bern region are feeling the immediate effects of this market shift.
"The high price of gold is a major challenge for us," states Nicole Stadelmann, who runs Bijouterie Stadelmann 72 in Bern's Marktgasse. "The gold price has always been volatile, but it has never risen as sharply as in recent months."
Gold Price Fact
Two solid gold wedding rings that cost around 3,500 francs a year ago could now be 1,000 francs more expensive, illustrating the direct impact on consumers.
Wedding Rings See Significant Price Hikes
Couples planning weddings are among those most affected. The increased cost of gold means wedding bands are now considerably more expensive. This often pushes buyers to their financial limit.
Many customers are now choosing simpler wedding ring designs or exploring alternatives to solid gold. This shift reflects a broader consumer response to the current market conditions.
Alternatives Emerge as Gold Prices Soar
With gold becoming less affordable for everyday wear, customers are increasingly turning to other precious metals. Silver and platinum are gaining popularity as attractive alternatives.
Nicole Stadelmann notes that these metals offer a viable option for daily jewelry. They provide a similar aesthetic appeal without the high price tag associated with solid gold.
Market Dynamics
The global market plays a significant role in these price fluctuations. Factors such as the devaluation of the US dollar contribute to the changing costs of precious stones like diamonds.
Diamonds Become More Accessible
Interestingly, while gold prices climb, the cost of larger, high-quality diamonds has moved in the opposite direction. Patrick Aeschbacher, owner of Bläuer jewelers in Thun, confirms that beautiful, larger brilliant-cut diamonds are currently more affordable.
This price decline for diamonds began approximately three years ago. Jewelers adjust their pricing based on these ongoing market developments.
- Synthetic Diamonds: The improved quality and lower cost of synthetic diamonds, particularly popular in the US market, have also contributed to the price reduction of natural diamonds.
- Jewelers' Stance: Many Bernese jewelers, including Nicole Stadelmann and Patrick Aeschbacher, prefer to offer genuine stones and do not work with synthetic alternatives.
Shifting Trends in Jewelry Purchases
The high cost of gold is also influencing the types of jewelry people buy. Heavy gold chains, once popular, are now less in demand due to their increased price.
Rony Sonderegger, who owns a jewelry store in Bern, explains that customers find it difficult to accept that a simple chain with a cross pendant might now cost twice as much as it did two years ago, reaching around 1,400 francs.
However, Patrick Aeschbacher in Thun sees a slightly different trend. He reports that customers still buy a similar number of chains, driven by the ongoing popularity of gold jewelry. He also offers existing stock at older, lower gold prices, presenting a potential bargain for buyers.
Secondhand and Upcycling Gain Traction
Many customers are also exploring secondhand jewelry. Bijouterie Stadelmann 72 has a dedicated section for pre-owned pieces, known as 'Trouvaille.' Rony Sonderegger's store also features a secondhand jewelry area.
Another growing trend involves customers bringing in old gold jewelry to be refashioned into new pieces. Ronald Sonderegger notes this allows clients to bypass the high current gold prices while still enjoying custom gold items.
Swiss Craftsmanship Remains a Strong Asset
Despite the challenges posed by fluctuating gold prices, the value placed on local Swiss craftsmanship remains high. Stadelmann employs five goldsmiths, making it one of Bern's larger gold processors. Rony Sonderegger's business also has four goldsmiths on staff.
Both jewelers emphasize the strong demand for Swiss-made products. "Swiss craftsmanship is highly sought after and popular," says Sonderegger. At Stadelmann's, their in-house atelier produces about 70 percent of their jewelry.
"The work of our goldsmiths is in demand," explains Nicole Stadelmann. "This allows this craft to be maintained in Switzerland, even if manufacturing abroad is cheaper."
This local connection serves as a unique selling point for Bernese jewelry stores. Customers with a specific budget often seek individually crafted pieces, a trend popular across generations, including younger buyers.
Gold as an Investment: Banks Report Increased Activity
The surge in gold prices is not only affecting the jewelry sector but also Bernese banks. Daniel Pfanner, head of Bank EEK, confirms an increase in both buying and selling of gold. The bank sees a balance between clients selling their one-kilogram gold bars to capitalize on high prices and new investors purchasing bars, Vreneli coins, and one-ounce coins.
Valiant Bank reports that its clients are primarily looking to sell gold rather than buy. Meanwhile, the Bern Cantonal Bank notes a preference for gold bars ranging from 50 to 1,000 grams, with less demand for Goldvreneli coins.
Looking Ahead: Beyond Price Speculation
While gold's role as an investment asset is clear, jewelers encourage customers to focus on the intrinsic value of jewelry. Patrick Aeschbacher highlights that those who bought gold seven years ago, when prices were also considered high, now view their purchase as a bargain.
Aeschbacher believes the primary motivation for customers should be the joy of owning a timeless, unique piece of jewelry. He considers the potential 'old gold value' as a pleasant bonus, not the main reason for purchase. Rony Sonderegger adds that the increased gold price has made customers appreciate the inherent value of their gold jewelry even more than before.