Rising Gold Prices and Jewellery Manufacturing

How Leading Manufacturers Are Reducing Cost and Risk Beyond Electroplating

Gold remains central to jewellery design and brand value. However, sustained gold price volatility has transformed gold finishing from a design choice into a cost and risk management issue for jewellery manufacturers.

For manufacturers supplying the European market, the United States, and other export markets, fluctuating gold prices, tighter chemical regulations, and higher expectations for batch consistency are accelerating a shift away from traditional electroplating. Many are now evaluating alternative gold-tone coating technologies that preserve gold aesthetics while offering better cost control, compliance confidence, and production stability.

Gold Price Volatility Is Reshaping Jewellery Cost Structures

According to the World Gold Council, gold prices have reached multiple all-time highs in recent years, driven by inflationary pressure, geopolitical uncertainty, and sustained central bank demand. While short-term movements fluctuate, volatility remains elevated.

Industry data reflects how manufacturers are responding. Global jewellery demand declined by approximately 11 per cent in 2024, while recycled gold usage increased by a similar margin as the industry adjusted to higher material costs.

For jewellery manufacturers, this environment creates several structural challenges:

• Unpredictable material cost per piece
• Reduced pricing flexibility for brands and private labels
• Higher working capital tied up in gold inventory
• Increased exposure to scrap and rework losses

Electroplating, which relies on wet chemistry and direct gold consumption, amplifies these risks by limiting control over gold usage and yield.

Source:

https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-full-year-2024?

https://www.gold.org/goldhub/research/gold-outlook-2026

Regulatory Pressure Is Increasing on Wet-Chemistry Finishing

Alongside cost volatility, regulatory scrutiny on metal finishing processes continues to intensify. The European Chemicals Agency has expanded oversight of hazardous substances commonly associated with electroplating, including ongoing actions related to hexavalent chromium.

Nickel, cobalt, and chromium VI remain critical compliance concerns for jewellery exported to Europe and other regulated markets. Even minor release failures can result in shipment delays, rejected batches, or loss of market access.

Source: https://echa.europa.eu/-/echa-proposes-restrictions-on-chromium-vi-substances-to-protect-health?

For manufacturers operating at scale, regulatory compliance is no longer just a documentation exercise. It has become a direct operational and commercial risk.

Why Electroplating Is Losing Viability at Scale

As production volumes increase, the limitations of electroplated gold finishes become more pronounced:

• Inefficient gold usage with limited recycling control
• Adhesion issues on stainless steel and precious alloys
• Batch-to-batch colour variation requiring rework
• High wastewater treatment and environmental management costs
• Ongoing exposure to tightening chemical regulations

These factors compound at scale, turning small process deviations into significant margin erosion and delivery risk. As a result, many manufacturers are reassessing electroplating as a long-term solution rather than a default process.

A Hybrid PVD Coating Solution for Gold-Tone Jewellery

NTI Nanofilm offers a Hybrid PVD gold-tone coating solution designed to replace electroplating while maintaining the aesthetic appeal of gold.

By combining titanium nitride, zirconium nitride, and real gold targets within a controlled PVD process, this approach delivers the appearance of gold with improved process stability, durability, and cost control.

Unlike wet-chemistry electroplating, PVD is a dry, vacuum-based process. This eliminates many of the variables that lead to contamination, inconsistency, and regulatory exposure.

What This Means for Jewellery Manufacturers

Compliance and Export Confidence

The Hybrid PVD gold-tone coating is completely free from nickel, cobalt, and chromium VI. This supports global compliance requirements and enables hypoallergenic positioning for consumer brands supplying regulated markets.

Better Cost Control

High-efficiency gold-target recycling allows manufacturers to control gold usage per piece with significantly less waste. This reduces exposure to gold price volatility and improves cost predictability.

Consistent Gold Tone at Scale

Gold tone is managed through calibrated L*a*b colour control, enabling stable and repeatable colour reproduction across batches. This minimises rework and supports consistent brand appearance across global supply chains.

Improved Durability and Lower After-Sales Risk

With hardness levels between 1500 and 2500 Hv, PVD gold-tone coatings offer approximately 10 to 20 times higher hardness than electroplated gold. This improves scratch resistance, extends product life, and reduces warranty and after-sales exposure.

Production-Ready Scalability

The PVD process is inherently repeatable and suitable for high-volume manufacturing, delivering consistent results from qualification through mass production.

Why Manufacturers Are Transitioning Away from Electroplating

The move away from electroplating is no longer driven by a single factor. It reflects a broader need to stabilise production, manage cost exposure, and reduce compliance risk.

Manufacturers adopting Hybrid PVD gold-tone coatings solutions typically see:

• Lower total cost of ownership per coated piece
• Reduced batch rejection and downtime
• Greater confidence in meeting export requirements
• Better alignment with sustainability and ESG expectations

These benefits make PVD-based gold-tone solutions increasingly attractive for manufacturers supplying global markets.

Rethinking Gold Finishing for Long-Term Stability

Gold will remain a defining element of jewellery design. However, the processes used to achieve gold finishes are evolving.

For jewellery manufacturers, the key consideration is no longer whether electroplating can still be used, but whether it provides the control, predictability, and resilience required for modern production.

Hybrid PVD gold-tone coatings solution offers a proven alternative that balances aesthetics, compliance, cost control, and scalability.

If you are evaluating alternatives to electroplating or exploring ways to reduce gold exposure without compromising design intent, NTI Nanofilm supports manufacturers from technical evaluation through production qualification.