Gold prices have pulled back from recent highs, but prices for luxury jewelry and watch brands such as Cartier, Van Cleef & Arpels, and Rolex continue to rise. With luxury companies raising prices one after another since the start of the year, the burden is growing for people preparing to buy wedding gifts.
◇ Cartier and Rolex raise prices despite gold price correction
According to the World Gold Council on the 24th, international gold prices climbed to record levels early this year before correcting. The average price per ounce in January rose to $5,405, then, as of late June, has been moving around $4,100 to $4,200 per ounce. It fell about 8% to 10% in a month.
Prices of luxury jewelry and watches have risen one after another this year. Cartier raised domestic prices in January. The classic Love ring, a flagship product, went from 3.09 million won to 3.33 million won, up 7.8%, and the Love bracelet medium model rose from 9.7 million won to 10.5 million won, up 8.2%. In May, watch prices were raised. The Tank Américaine watch small model went from 6.25 million won to 6.75 million won, up 8.0%, and the Baignoire watch mini model went from 22.8 million won to 24.7 million won, up 8.3%.
Van Cleef & Arpels also joined the price hikes this year. In March, it raised prices on some products such as Alhambra, Frivole, and Perlée by about 5%.
Swiss luxury watch brand Rolex also raised domestic retail prices for some watch models by about 2% to 5% on the 1st of this month. In particular, models with high gold content, the so-called "solid gold" pieces, saw larger increases. The Cosmograph Daytona 18K yellow gold 40 mm went from 81.18 million won to 85.25 million won, up 4.07 million won (5.0%). The Sky-Dweller 18K Everose gold 42 mm also rose from 95.44 million won to 100.19 million won, up 5.0%.
◇ Scarcity and brand policy matter more than raw materials
The reason luxury jewelry and watch prices are rising even as gold prices correct is that these products are not linked solely to raw material prices. While standard gold rings or gold bars reflect gold quotes more directly, high-end jewelry and luxury watches also reflect design, craftsmanship, brand heritage, marketing expense, and distribution network operating costs.
Luxury brands do not immediately lower consumer prices just because costs fall. An industry official said, "If you cut prices, it damages the holding value for existing buyers and can affect the premium image the brand has maintained," adding, "The higher the price, the more brands prefer to maintain or raise price points while managing scarcity and symbolism, rather than lowering prices to increase volume."
In particular, luxury watch prices reflect movement development and manufacturing, assembly, finishing, quality inspection, and after-sales service network operating costs. Local Swiss artisans' labor costs and manufacturing facility investment expenses are also significant. According to the Federation of the Swiss Watch Industry, Switzerland's wristwatch exports in 2025 were 24.4 billion Swiss francs (about 46.4 trillion won), down 1.7% from the previous year. Export volume fell 4.8% to 14.6 million units. While overall volume declined, it indicates the market structure remains focused on high-priced products.
Exchange rates are also a key factor in domestic price hikes. Major luxury jewelry and watch brands such as Cartier, Van Cleef & Arpels, and Rolex are global brands mostly headquartered in Europe. Because domestic sales depend on imports, when the won stays weak, domestic retail price pressures can grow even if some international raw material prices fall.
◇ Wedding gifts shift from "souvenirs" to "alternative assets"
A shift in wedding gift consumption patterns is also supporting price increases. In the past, wedding gifts were largely symbolic purchases to commemorate marriage, but more consumers now view them as high-priced consumer goods with relatively low depreciation or as alternative assets. Rising gold prices, repeated price hikes by luxury brands, and the activation of the secondhand market have converged to create this result.
An industry official said, "In the case of wedding gift demand, it is hard to indefinitely delay the timing of purchase, and there is a strong perception that prices for popular products keep rising, so consumers tend to bring forward purchases before increases," adding, "For popular products, store inventory may be insufficient or it may be hard to get the desired model immediately, so demand is not easing easily despite price hikes."