CollectionsApr 25, 2025
Sylvie Looks to Water in New Sculptural Bridal Collection“Shell Auranova” is the next generation of the brand’s bridal line, featuring half-bezel engagement rings with bold and fluid designs.
MajorsMar 02, 2020
Price of Gold Expected to Stay High in 2020
The metal is predicted to average more than $1,500 in 2020, according to a recent Reuters poll.
Gold is expected to average $1,520 an ounce in the first quarter and $1,551 overall in 2020, a recent Reuters poll shows. (Photo courtesy of United Precious Metals)
New York—Gold is predicted to average more than $1,500 an ounce in 2020, according to a recent Reuters poll, up from the $1,393 it averaged last year.
According to a precious metals price poll conducted by Reuters and shared on Refinitiv’s Eikon platform, analysts predict gold will average $1,520 in the first quarter, $1,542 in the second quarter and $1,551 for the full year.
Reuters conducts its poll every quarter, combining predictions from two dozen or more analysts. It represents an average, rather than the actual price gold hits at any point during the day.
The gold price rose dramatically in the second half of 2019, jumping from an average of $1,283.95 in May to $1,498.80 in August.
It hovered somewhere around the $1,500 mark for the rest of the year, finishing with an average price of $1,476.04 in December, according to Kitco.
The gold price rose for several reasons last year, said Johann Wiebe, a lead metals analyst on the GFMS team at Refinitiv.
Negative bond yields encouraged an appetite for gold as an investment, he said.
Also impacting the gold price was general uncertainty in the U.S. economy stemming from macroeconomic developments, like the trade dispute between the United States and China.
To date in 2020, the price of gold has hit its highest level in seven years, peaking at $1,671.65 on Feb. 24.
While it’s come down slightly since then, the metal’s price is expected to remain elevated throughout the year.
Wiebe said concerns around coronavirus will keep gold prices aloft, adding that the spread of the disease has sparked discussion about “wide macroeconomic implications.”
Automobile sales in China, for example, have plunged in the past couple of months.
The disease will have ramifications on global economic growth, and the gold price will remain elevated because of that, Wiebe said.
The current correction in the stock market also is keeping gold prices high.
Ultimately, though, he said once a vaccine is found and restrictions on travel and public gatherings are lifted, the gold price is likely to drop considerably.
Platinum and Palladium Predictions
Platinum is predicted to remain significantly less expensive than gold this year, with the Reuters poll showing the white metal will average $938 an ounce in the first quarter, $962 in the second quarter and $979 for the year.
Wiebe said a declining demand for platinum jewelry in China is having a
big impact, as is the aforementioned decline in automotive demand in the country.
And, as there continues to be a move toward gasoline and electric cars, and away from diesel, platinum is coming under pressure. (Platinum is often used for catalytic converters in diesel cars.)
He noted on the supply side, producers in South Africa are making efforts to consolidate production.
However, because rhodium and palladium—both of which are doing “so incredibly well,” with prices skyrocketing—are often byproducts of platinum production, there still are some miners indicating they will continue producing and stockpiling platinum.
So, supply will stay elevated or possibly increase this year, Wiebe said, “even though it should be moving in the other direction to support prices,” while demand is expected to increase, albeit slowly.
This means, he said, there is some upside for platinum prices but “not a huge amount.”
Palladium, meanwhile, has been performing well and has been the “darling” of the industry for some years now, Wiebe said.
As emissions regulations across the world tighten, palladium demand will increase because of its use in gasoline vehicles.
The decline in car sales in China could bring the price of palladium down a bit too, but since supply won’t increase much in the next two years or so, prices for the metal will remain elevated, Wiebe said.
The Reuters poll predicts it will average $2,056 this year.
Silver Softness
The Reuters poll has silver averaging $18.45 an ounce in 2020, up from $16.21 in 2019.
While silver generally follows the gold price trend, Wiebe said when looking at the gold/silver ratio—the amount of silver it takes to purchase one ounce of gold—silver has been lagging for a few years now.
It’s currently at 95.50 as of Monday morning, according to GoldPrice.com. (Historically, it’s usually somewhere around 65 or 70, according to Wiebe.)
“I think we’re still a bit high,” he said. “I think silver is still cheap where gold’s expensive, so silver still has some potential catch-up to do there.”
But, he added, there’s a lot of silver in the market right now, which “keeps a lid on the opportunity for silver to significantly move.”
And, as there continues to be a move toward gasoline and electric cars, and away from diesel, platinum is coming under pressure. (Platinum is often used for catalytic converters in diesel cars.)
He noted on the supply side, producers in South Africa are making efforts to consolidate production.
However, because rhodium and palladium—both of which are doing “so incredibly well,” with prices skyrocketing—are often byproducts of platinum production, there still are some miners indicating they will continue producing and stockpiling platinum.
So, supply will stay elevated or possibly increase this year, Wiebe said, “even though it should be moving in the other direction to support prices,” while demand is expected to increase, albeit slowly.
This means, he said, there is some upside for platinum prices but “not a huge amount.”
Palladium, meanwhile, has been performing well and has been the “darling” of the industry for some years now, Wiebe said.
As emissions regulations across the world tighten, palladium demand will increase because of its use in gasoline vehicles.
The decline in car sales in China could bring the price of palladium down a bit too, but since supply won’t increase much in the next two years or so, prices for the metal will remain elevated, Wiebe said.
The Reuters poll predicts it will average $2,056 this year.
Silver Softness
The Reuters poll has silver averaging $18.45 an ounce in 2020, up from $16.21 in 2019.
While silver generally follows the gold price trend, Wiebe said when looking at the gold/silver ratio—the amount of silver it takes to purchase one ounce of gold—silver has been lagging for a few years now.
It’s currently at 95.50 as of Monday morning, according to GoldPrice.com. (Historically, it’s usually somewhere around 65 or 70, according to Wiebe.)
“I think we’re still a bit high,” he said. “I think silver is still cheap where gold’s expensive, so silver still has some potential catch-up to do there.”
But, he added, there’s a lot of silver in the market right now, which “keeps a lid on the opportunity for silver to significantly move.”
More on Majors
The Latest
FinancialsApr 25, 2025
Kering’s Jewelry Brands Persevere as Q1 Sales Sink 14%Boucheron and Pomellato performed well in an otherwise bleak quarter for Kering amid struggles at Gucci.
EditorsApr 25, 2025
Piece of the Week: Deborah Meyers Experience’s ‘The Birds’ EarringsDesigner Deborah Meyers created her birds from oxidized sterling silver, rose-cut diamond eyes, and Akoya Keshi pearl feathers.
Brought to you by
Emerging Jewelers Accelerator Program Announces Second Cohort of Aspiring Jewelry Entrepreneurs Six new retail businesses were selected for the 2025 program, which began in January.
SourcingApr 25, 2025
De Beers Sales, Production Fall in Q1 Amid UncertaintyThe company said it expects sightholders to remain “cautious” with their purchasing due to all the unknowns around the U.S. tariffs.
Weekly QuizApr 24, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
Supplier BulletinApr 24, 2025
Protect Your Customers and Your BusinessSponsored by the Gemological Institute of America
EditorsApr 24, 2025
Q&A: Wolf’s CEO Talks U.S. ExpansionSimon Wolf shares why the time was right to open a new office here, what he looks for in a retail partner, and why he loves U.S. consumers.
Brought to you by
Protect Your Customers and Your BusinessThe risk of laboratory-grown diamonds being falsely presented as natural diamonds presents a very significant danger to consumer trust.
IndependentsApr 24, 2025
Longtime Iowa Jeweler Herman Ginsberg Dies at 99 A third-generation jeweler, Ginsberg worked at his family’s store, Ginsberg Jewelers, from 1948 until his retirement in 2019.
FinancialsApr 24, 2025
Charles & Colvard Delisted From Nasdaq Due to NoncomplianceThe company failed to file its quarterly reports in a timely manner.
SourcingApr 24, 2025
Young Diamantaires Transition to NonprofitThe organization also announced its board of directors.
TrendsApr 24, 2025
Amanda’s Style File: So CharmingCharms may be tiny but with their small size comes endless layering possibilities, from bracelets to necklaces and earrings.
Events & AwardsApr 23, 2025
PDPaola Creative Director Wins FGI’s ‘Rising Star’ AwardPaola Sasplugas, co-founder of the Barcelona-based jewelry brand, received the Fine Jewelry Award.
AuctionsApr 23, 2025
Rare Custom Rolex Daytona Heads to AuctionA platinum Zenith-powered Daytona commissioned in the late ‘90s will headline Sotheby’s Important Watches sale in Geneva next month.
MajorsApr 22, 2025
Zales’ Rebrand Takes Playful Approach to Fine JewelryThe Signet Jewelers-owned retailer wants to encourage younger shoppers to wear fine jewelry every day, not just on special occasions.
AuctionsApr 22, 2025
Christie’s to Auction JAR Jewelry CollectionThe 21 pieces, all from a private collector, will be offered at its Magnificent Jewels auction next month.
ColumnistsApr 22, 2025
The PR Adviser: Building Buzz Through Word of MouthLilian Raji answers a question from a reader who is looking to grow her jewelry business but has a limited marketing budget.
GradingApr 22, 2025
Avi Levy Is GCAL By Sarine’s New Chief Growth OfficerGCAL by Sarine created the new role to sharpen the company’s focus on strategic partnerships and scalable expansion.
IndependentsApr 22, 2025
Brinker’s Jewelers Acquires Fellow IndependentThe Indiana jeweler has acquired Scottsdale Fine Jewelers in Scottsdale, Arizona.
Events & AwardsApr 21, 2025
An Exhibition Exploring the History of Cartier Is Now on Display“Cartier: Design, Craft, and Legacy” opened earlier this month at the Victoria and Albert Museum in London.
IndependentsApr 21, 2025
New York Jeweler to Close After 111 YearsVan Cott Jewelers in Vestal, New York, is hosting a going-out-of-business sale.
IndependentsApr 21, 2025
IJO Names New Director of Vendor Relations, Merchandise StrategyIndustry veteran Samantha Larson has held leadership roles at Borsheims, McTeigue & McClelland, Stuller, and Long’s Jewelers.
Events & AwardsApr 21, 2025
Jewelers of Louisiana, Mississippi Jewelers Association to Co-Host ConventionThe two organizations will hold the educational event together this fall in Mississippi.
Events & AwardsApr 18, 2025
Daymond John to Give Keynote at JCK Las VegasThe entrepreneur and “Shark Tank” star will share his top tips for success.
CollectionsApr 18, 2025
Piece of the Week: Dukachi’s ‘Easter Bread’ PendantThe Ukrainian brand’s new pendant is modeled after a traditional paska, a pastry often baked for Easter in Eastern European cultures.
IndependentsApr 18, 2025
Bremer Jewelry to Reveal Renovated StoreThe jeweler has announced a grand reopening for its recently remodeled location in Peoria, Illinois.
MajorsApr 18, 2025
Tiffany & Co. Employees Star in Mother’s Day CampaignThe “Strong Like Mom” campaign features moms who work at Tiffany & Co. and their children.
