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Third Pre-Congress Special Report Considers Impacts Of Substantial Increases in Precious Metal Prices

impacts of substantial increases  in precious metal pricesReading Time: 4 minutes
Key takeaways

• The third pre-congress Special Report by CIBJO highlights 2025 as a landmark year, with gold, silver, and platinum all reaching record price highs.

• While elevated precious metal prices and cost-of-living pressures reduced the volume of gold and silver demanded by jewelry manufacturers, overall jewelry purchase value increased significantly due to resilient consumer demand.

• Market volatility and cautious consumer sentiment are expected to continue into 2026, alongside an increasing emphasis on supply chain provenance, traceability, and ESG credentials.

(MILAN, ITALY) – With little more than eight weeks to go to the opening of the 2026 CIBJO Congress in Vicenza, Italy, on September 4, 2026, the third of the pre-congress Special Reports has been released. Prepared by the CIBJO Precious Metals Commission, headed by Vaishali Banerjee, the report provides a comprehensive overview of the market in 2025, which it describes as a “landmark year.”

impacts of substantial increases  in precious metal prices

After two years of gold leading investment flows, in 2025 gold’s rally was joined by silver and platinum, which also recorded record highs, and palladium, which posted strong gains. But as the report notes, the effect on the jewelry markets was more nuanced.

“While higher prices weighed on volume, jewelry purchase value increased significantly, reflecting sustained consumer demand,” Ms. Banerjee wrote. “Yet another trend was cross-metal substitution at both ends of the market. The high-end market saw some shifts to platinum from gold. At the same time, at the lower end, gold-plated silver jewelry rose in markets like India and China – indicating that jewelry demand remains resilient, even as consumer purchasing patterns evolve.”

But with prices so high, the demand for gold by jewelry manufacturers declined by volume across all major markets, the report noted. In Europe, it contracted by 11 percent to 6.6 million ounces, partly due to margin pressure from the United States’ proposed 10 percent tariff threat. Jewelry consumption declined by 9.3 percent as well.

The United States saw its lowest-ever gold jewelry consumption, down 13 percent year-on-year from 2014 to 3.7 million ounces. Higher gold prices, coupled with cost-of-living pressures, constrained consumer demand, the report said.

Platinum prices more than doubled over the course of the year, rising by 135 percent from $977 per ounce in January to $2,303 per ounce in December. Still, the metal’s relatively attractive price compared to gold spurred a rise in demand for platinum among jewelry manufacturers, climbing by about 10 percent year-on-year to 2,214 thousand ounces, an eight-year high.

The silver price also rose remarkably in 2025, with spot prices climbing from $29 per ounce in January to $74.8 per ounce in December, representing 145 percent year-on-year growth. But demand for silver by jewelry manufacturers fell by 8 percent over the period to 189 million ounces. Exporters were impacted by both the high prices and U.S. tariffs, the report stated.

“Looking ahead, the West Asia crisis, elevated energy costs and the pass-through effects of tariffs are expected to keep markets volatile and consumer sentiment cautious in 2026,” Ms. Banerjee wrote. “Yet, precious metals are likely to remain well supported by their enduring role as stores of value and portfolio diversifiers. At the same time, growing scrutiny of supply chains will place greater emphasis on provenance, traceability and ESG credentials, making responsible sourcing an increasingly important driver of competitiveness and consumer trust.”

The post Third Pre-Congress Special Report Considers Impacts Of Substantial Increases in Precious Metal Prices appeared first on Southern Jewelry News.



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