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The problem of the cost of gold for the supply chain, and how to deal with it

Credit: Legor

 

In 2025, the cost of gold will reach unprecedented levels. Over the past ten years, due to inflation, political conflicts, increased demand from expanding countries and the identification of gold as a safe haven, the value of gold has more than doubled, reaching peaks of over 90 euros per gram, and consequently weighing significantly on the production costs of the accessory supply chain.

The problem is real: brands, especially high-end ones, cannot give up the quality of metal accessories in their products, but must optimize costs, asking the supply chain for concrete solutions. We talked about it with Fulvio Sinisi, R&D & Technical Manager of the Plating division of Legor, a leading company in the production of metal alloys and galvanic solutions for the world of jewelry and fashion, with whom we identified 3 possible solutions.

 

  • Reducing the thickness of gold galvanic deposits
    The most immediate solution to reduce costs is certainly to reduce the thickness deposited by the gold plating in order to decrease the total quantity of gold applied to the accessories. A valid solution for mid-range brands but not optimal for luxury brands, at least not alone. Although the result does not change aesthetically, the product could be affected qualitatively, being exposed to wear and tarnish phenomena much more quickly, given the lower thickness of the deposit.

 

  • Reducing the percentage of gold in galvanic deposits
    Normally, galvanic deposits are composed of 22-23 carat gold: a viable solution that helps reduce costs is to lower the carat in one or more intermediate layers up to a maximum of 18-16 carats. Using a 22-carat gold deposit only for the last layer and lower carats for the underlying layers allows us to reduce the total cost while maintaining quality.

 

  • Use cataphoretic paints
    Protecting the outermost layer with a cataphoretic paint, which is completely transparent and has a low cost, certainly allows you to protect the accessory from wear and increase its resistance to tarnish especially if you have worked with reduced thicknesses.

 

«We must also consider that it is not just a problem of the cost of gold, but of an increase in prices in general, that of energy first and foremost» adds Sinisi. For this reason, it is necessary to study solutions that cushion and optimize the processing procedures at 360 degrees, such as for example galvanic baths that work at room temperature.

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