GYPPHY

Hello!
Thank you for your continued patronage of GYPPHY.

Due to the unstable world situation such as the coronavirus and the conflict between Ukraine and Russia, the prices of materials used in jewelry continue to soar, and it is predicted that many brands will definitely be forced to revise their prices in 2022. Masu. GYPPHY is also an exception.

This time, we will consider how the prices of gold, palladium, and nickel will change in the future, and how much jewelry prices will rise as a result.

■About the price of gold
Gold is a safe asset, and when there is some kind of unstable world situation, large purchases occur, led by investors, and as a result, the price rises (actually buying the physical (I'm not actually buying financial products called futures, but I won't go into that here because I'm talking about the world of investment.)

In 2020, the coronavirus began to spread in earnest and the price of gold rose rapidly. By the way, GYPPHY is a brand launched in October 2019, and at that time the price of gold was about 5,100 yen per gram, but today, March 9, 2022, the retail price of gold is 8,402 yen, an increase of about 65%. (From Tanaka Kikinzoku Kogyo).

Furthermore, the price of gold is expected to continue to rise even in the short term. In fact, on yesterday, the 8th, Goldman Sachs revised upward its price forecast for gold, and if the unstable situation continues, it will be priced at $1,950/oz for 3 months, $2,500/oz for 6 months, and $2,500/oz for 12 months ( (See article below).

(https://www.kitco.com/news/2022-03-08/Goldman-Sachs-pushes-up-its-gold-price-forecasts.html)

If the price goes up to $2,500/oz, there is a good chance that the retail price will exceed 10,000 yen per gram in Japanese yen, and the price is expected to rise by about 20% from the current price.

■Palladium
Palladium is a material mainly required when making white gold, and is actually a metal that costs more per gram than gold. It is often used in car catalysts and semiconductors, and its price has continued to rise due to demand, but since the main producer of palladium is Russia (40% of the world's production), sanctions have forced the supply of palladium. Due to concerns about stagnation, the price reached a new high in yesterday's trading and is expected to rise even higher. Retail prices have increased by approximately 35% in the last 10 days.

(https://fujidental.co.jp/graph07.html)

■Nickel
Nickel is a metal often used in fast fashion accessories (a material that is likely to be the main cause of metal allergic reactions), but it is also an essential material for EV cars, and this is also the case. The price had been rising, but since Russia is one of the major producers of palladium, it has skyrocketed by about 250% in the last two days due to concerns about supply due to economic sanctions (an investment called short squeeze). This phenomenon is also a factor, but I will omit that topic as well).

*It seems that this transaction has been temporarily suspended due to various reasons.
Source: https://www.reuters.com/business/energy/lme-nickel-trading-halted-big-short-hits-big-trouble-andy-home-2022-03-08/

As mentioned above, if this unstable world situation continues, we predict that the prices of the above materials will rise sooner than expected, and many brands will be forced to revise their prices. GYPPHY uses moissanite, so it may not have much to do with it, but Russia is also famous as a diamond producing country, so the price of natural diamond jewelry is likely to rise even more.

It will largely depend on design etc., but we predict that various brands will see price revisions of at least 20%, or roughly double, for fine jewelry that uses gold over the next year. I don't think it's strange (this is just the author's prediction).

I just pray that everything calms down soon and we return to a peaceful world.