Why silver and gold may still be the safest investment there is: high jewellery houses Van Cleef & Arpels and Tiffany & Co. embrace precious metals, as values surge in uncertain times

Dec 23 , 2023

Proving their metal: Van Cleef & Arpels and Tiffany & Co. continue their love affairs with gold and silver, while buyer demand asserted itself at the Jewellery & Gem World Hong Kong fair. Photos: Handout

Nearly 54,000 buyers from 140 countries flocked to the Jewellery & Gem World Hong Kong fair, even as economic uncertainty and geopolitical instability push up the prices of precious metals

Van Cleef & Arpels is creating new silhouettes in gold, Tiffany & Co. debuted a collection in blackened sterling silver, and Monica Vinader has seen sales of silver pieces go up by 26%

The prices of gold, silver and platinum may all be beginning to enjoy tailwinds due to weakening global economic growth, stabilising rate hikes, geopolitical tensions and growing industrial demand, according to the World Bank. In September, the bank’s precious metals index hit 146.6.

“Wars remind us how connected all countries and markets are – the familiar globalisation that has allowed our economies to develop strongly by taking advantage of demand from external markets also means that they’re affected by wars in countries thousands of miles away,” Juan Rubén García, a consultant specialising in international trade and director at Spanish Financial Services, told the Post.

Bulgari Cabochon Collection yellow gold ring and necklace

“Last year we saw how the GDP of Ukraine and Russia fell and foreign investment virtually evaporated. This panic spread to many other countries and their investors, who turned to precious metals as a safe haven investment, causing the price of precious metals to rise rapidly,” García adds. “I do not believe that there is any commodity that has been spared recently from rising prices, and I refer to the cumulative inflation rates of all the countries in the world over the last year.

“In the end, we’re talking about a basic economic rule of supply and demand: the higher the demand for precious metals, the more their value increases,” he continues. “It’s true that many brands use them in the manufacture of their products, from fine jewellery and watches to fashion and even in cars. In the end, they pass on these extra costs to their customers.”

Bulgari Cabochon Collection rose gold ring and necklace

All this may be welcome news for Hong Kong’s jewellery industry after a few volatile years. The sector is generally export focused, according to the Hong Kong Trade Development Council.

Total exports of fine jewellery, including both domestic exports and re-exports, fell 4 per cent in 2022, but that was after a spike of 47 per cent in 2021.

Tiffany & Co. Tiffany Forge large link necklace in blackened sterling silver

The appetite for jewellery and precious metals in Hong Kong may be bouncing back. This was evidenced during the 40th edition of the Jewellery & Gem World Hong Kong fair (JGW) in September.