Los Angeles jeweler struggles to keep up with historic gold prices

Gold prices have surged to historic highs, topping $5,300 an ounce for the first time last week, a dramatic rise that is rippling through the precious metals market and forcing local jewelers to rethink how they do business.

Silver prices are climbing even faster, and experts say the momentum is unlikely to slow anytime soon. Analysts predict elevated prices for precious metals could continue well into 2026, driven by global uncertainty, weakening currencies and soaring industrial demand.

For Los Angeles jeweler Maya Brenner, the past year has been anything but predictable.

"It's just been a roller coaster," Brenner said. "We can't even keep up with how fast it's going up."

Brenner has sold her handcrafted jewelry in LA for 25 years. While her most popular pieces typically fall in the $300 to $400 range, soaring material costs are making it increasingly difficult to maintain those price points.

"The way that gold is increasing, we can't even raise the prices high enough to match it," Brenner said.

Gold rose roughly 65% last year alone, a significant increase for a metal traditionally seen as a stable store of value. Silver has climbed even more, gaining 60% in the past month and jumping about 200% year over year. It crossed $100 an ounce for the first time in history.

To cope, Brenner is shifting her product mix, selling more beaded jewelry and reducing her reliance on gold. She is also considering discontinuing rose gold altogether to streamline inventory and limit exposure to volatile prices. So far, she has avoided raising prices — a decision she says may not be sustainable.

"There comes a point where you can no longer absorb those costs," Brenner said. "I feel like we're there."

Peter Thomas, chairman of AuSecure and a precious metals market expert, believes gold's climb may be far from over.

"I think it's got to hold $5,000. That's my magic number right now," Thomas said. "If it does, I'm looking at $8,000 without a problem."

Thomas said that the level could be reached by the end of the year if current conditions persist.

Two key factors are driving the surge, he said: a weakening U.S. dollar and escalating geopolitical tensions.

"The dollar has been deteriorating for quite a while, and the geopolitical situations are just getting hotter and hotter," Thomas said. "The two of them have been boiling underneath."

At the same time, production has slowed while demand continues to grow — not just from investors, but from technology and energy sectors that rely heavily on precious metals.

"Look at your phone," Thomas said. "There are 72 metals in there. Solar cells, EVs,  electric vehicles alone are expected to double consumption by 2030. We're seeing a gigantic change in the consumption picture."

Brenner has found some stability by expanding into higher-end jewelry, including red-carpet and diamond pieces that are selling well among affluent buyers in what economists describe as a K-shaped economy. Still, she worries about the long-term impact on everyday consumers.

"I want people to know that we're struggling with this issue just like they are," Brenner said. "We don't want prices to be what they are. But at some point, gold is just going to be almost unaffordable."

For perspective, gold traded at roughly $1,300 an ounce in 2019 — a price that now feels like a distant memory.