IDEX Online Research: Gold Jewelry Retail Prices Steadily Declining in U.S. Market

The average retail price of a piece of gold jewelry in the U.S. has dropped by 15 percent since 1993, according to data recently released by the World Gold Council (WGC). However, in the same period, the price of gold has risen by 24 percent.

In 2005, the average retail price of gold jewelry in the U.S. was $76.01, down 15 percent from the average price of $89.27 in 1993, based on a survey conducted annually by the WGC.

As the graph below illustrates, the average price of a piece of gold jewelry has been declining steadily for more than a decade. Gold jewelry is defined as “all men’s and women’s gold jewelry where the primary value is the gold content, including gemstone jewelry.”

Gold Price Up

In the 13-year period between 1993 and 2005, the price of gold has been like a roller coaster. In the research study period, gold rose to an average price of $445 per ounce in 2005 (it peaked at over $536 in December 2005), up 26 percent from 1993’s average price of $360 per ounce. The graph below illustrates the price of gold by year between 1993 and 2005.

Gold Jewelry Retail Prices Do Not Follow Retail Price Movement for All Jewelry

The graph below compares the average retail price change of all jewelry to the average retail price change of gold jewelry. On a year-to-year basis, there is some significant variation in the change in the average retail price of gold jewelry versus the change in the average price of all jewelry. For example, in 1994, gold jewelry retail prices declined by about 2.5 percent while the average retail price of all jewelry rose by about 2.5 percent.

Interestingly, however, despite all of the inter-year movement, the decline in the price of gold jewelry between 1993 and 2005 was 15 percent; the retail price of all jewelry, including gemstone jewelry, precious metal jewelry, and other jewelry such as pearls and watches, also declined by exactly 15 percent in the same period.