Here’s a look at the latest developments in the precious metals market for the week beginning 3/1/21.

• Gold Prices Drop Below $1700

• Bitcoin vs. Gold

• Jewelry’s Sustainable Future

Gold Prices Drop Below $1700

On Thursday, speaking at the Wall Street Journal Jobs Summit, Federal Reserve Chair Jerome Powell said that while inflation is on the rise, he sees the move as transitory and a one-time event.

He was also dismissive of the rise in bond yields and suggested that it doesn’t signal that the central bank will be raising the interest rate anytime soon.

Following his comments, yields for 10-year Treasury notes spiked higher, which is helping to push gold prices below critical support around $1,700 an ounce.

According to some analysts, Powell’s comments on bond yields could continue to be negative for gold prices.

To learn more: Gold prices drop below $1,700 as Jerome Powell dismisses rising inflation and bond yields

Bitcoin vs. Gold

Is bitcoin or gold a better hedge against inflation?

Inflation concerns have led to more volatility in the stocks and bonds market. Normally, that would be good for gold as it usually does well in times of inflation. However, bitcoin has recently taken the focus off of gold.

Gold prices are down about 9% this year and are trading nearly 15% below the all-time high of more than $2,000 an ounce set last summer. Meanwhile, bitcoin has soared nearly 70% and is currently hovering just below $50,000 per coin — not far from the record high it reached last month.

Still, investors think gold is due for a rebound. The price volatility of bitcoin makes it less attractive than gold. Analysts argue that investors need to “stay vigilant” and get ahead of this inflation scenario and that buying gold is one way to do so.

Bitcoin will likely remain popular with investors who view it as a store of value during times of inflation — just like gold.

To learn more: Bitcoin vs. gold: Is cryptocurrency or a mineral a better hedge against inflation?

What Does Sustainability Look Like for Fine Jewelry?

“Gold is one of the rare materials that can be repeatedly recycled without any deterioration in quality and that reduces considerably the need of new mining.” – Stephanie Wenk, Sauer.

A three-time recipient of the De Beers Diamond International Award, Sauer, one of Brazil’s most renowned jewelers, is pivoting their brand to be more sustainable.

Stephanie Wenk, Sauer’s creative director since 2013, is the pioneer behind this approach in sustainable production. For the past five years, Wenk has worked exclusively with recycled 18k gold.

To Learn More: What Does Sustainability Look Like for Fine Jewelry? This Designer is Paving the Way.