A continuing rise in precious metal prices is unlikely to deliver serious long-term harm to the retail industry, experts have claimed.

With gold and platinum prices continuing to soar to new highs, there has been concern among some observers that there will be a bite into demand, USA Today reports.

However, while industry figures such as Jewelers of America's Peggy Jo Donahue say it will be "very tough to break the news to consumers that after so many years of stable prices, prices have to go up", there is underlying confidence in the strength of the market.

One reason for the absence of panic is the competitive nature of the jewellery business, which is expected to inhibit large price increases.

In addition, the arrival of the wedding season is likely to offer a fillip for jewellers, with the industry expected to weather small price hikes as Unity Marketing's Pam Danziger explained.

"People will really stretch [to buy] jewellery," she told the American daily.

It is a theme echoed by National Jeweler editor Whitney Sielaff, who pointed out jewellery's ingrained position in society.

"It's a cultural imperative to have a diamond ring to get married, and you want that set in a precious metal - gold or platinum," he argued.

Figures released in February suggested the jewellery market is proving resilient, with platinum helping to push up sales.

High-end jewellers such as Tiffany and Bulgari, as well as North America's largest retail jeweller, Zale, all saw sales rise in their results.


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