Tiffany & Co., one of the world's three major luxury jewelry brands under LVMH, will raise prices on key products starting on the 12th of next month. The move comes as global gold prices hit all-time highs, increasing raw material costs.
According to the industry on the 15th, Tiffany will raise the retail prices of some jewelry and watch products sold in Korea by an average of 5–10% starting on the 12th of next month. The specific increase by item was not disclosed, but the flagship wedding band "Milgrain Ring" is reportedly included.
Tiffany previously raised prices on major product lines in Korea twice, in February and June. The latest increase will be the third this year. The Milgrain Ring, for which a price hike has been signaled, is among the most popular wedding bands for newlyweds in Korea. Even after purchase, if the right size is not available, buyers must wait 2–3 months to receive it.
The price increase is due to rising raw material costs, including gold. Recently, international gold prices have hit record highs day after day on expectations of U.S. interest rate cuts, a weaker dollar, and heightened geopolitical risks.
According to Bloomberg, on the 15th (local time) the spot price of gold rose to as high as $4,190.90 per ounce as of the previous afternoon, setting a new record. Gold futures for December delivery on the New York Commodities Exchange (COMEX) also touched the $4,190 level. So far this year, gold prices are up 57%.
With gold prices rising, other luxury jewelry prices are also soaring. The French luxury brand Cartier raised prices by an average of 2–4% last month, marking its third adjustment this year. The Italian jewelry and watch brand Bulgari also announced an additional increase after Chuseok, following an average 7–10% hike in June.
Boucheron adjusted prices in February and July; Van Cleef & Arpels in January and April; and Damiani twice, in February and July. As a result, the industry says the typical once-a-year cycle for luxury jewelry price increases has been broken, with twice-yearly hikes in the first and second halves becoming the new trend.
Luxury watch brands are moving similarly. Rolex raised prices on key models by up to 7% in January and July this year, and OMEGA plans to raise prices on all products by an average of 5% in November. This will be the second adjustment since February this year.
Domestic brands have not been spared the impact of rising gold prices. Stonehenge raised prices on all products by about 20% in February and implemented an additional adjustment in June. Golden Dew plans to raise retail prices on some items by about 20% in early November, following an increase in March.
A luxury industry official said, "Not only Tiffany but also global jewelry brands such as Bulgari and Cartier are raising prices one after another, spreading what is called 'N-th round increases,'" adding, "With the year-end shopping season aligning with strong gold prices, the possibility of further hikes cannot be ruled out."