【Seoul, South】International Gold Price Surpasses $5,000 per Ounce for First Time in History, Triggering Wave of Jewelry Price Hikes in South Korea

International gold prices have soared past $5,000 per ounce for the first time in history, continuing a sharp rally. In South Korea, the price of pure gold (3.75 grams) has easily exceeded 1 million won. Consequently, the wave of jewelry price increases that began at the start of the year is now shifting from international luxury brands to domestic brands. With the upcoming peak wedding season approaching, there are even signs of “Nth price hikes” targeting items like wedding gifts.

According to industry sources on the 26th, the jewelry brand Didier Dubot, under the Sejung Group, will raise prices for some of its products starting from the 28th of this month. It is reported that prices will increase by up to around 20%.

Didier Dubot had already raised product prices by an average of about 14% last September ahead of the autumn wedding season. However, due to the continued rise in gold prices, it has adjusted product prices again after just four months.
Golden Dew, celebrating its 37th anniversary this year, also plans to raise prices in February. A representative from a Golden Dew store in a Seoul department store stated:

J.Estina (formerly Romanson), representing K-jewelry, will also raise product prices next month.

Luxury jewelry brands are no exception in this wave of price increases. Cartier, part of the Swiss Richemont Group, is expected to raise jewelry product prices by 6% to 9% starting from the 27th of this month. Having already increased prices for jewelry and watches sold domestically in February, May, September, and December of last year, Cartier exemplifies the trend of “Nth price hikes” driven by fluctuations in gold prices.
Major jewelry brands such as Boucheron, Tiffany & Co., Tapanaki, and Chow Tai Fook are also expected to join the price increase trend starting in February.
Several luxury brands have already implemented “sudden price hikes” since the beginning of the year. The French luxury brand Dior raised jewelry prices by an average of about 6% starting on the 20th, and Chanel also increased jewelry prices on the 13th. As a result, the price of Chanel’s Coco Crush 18K beige mini ring rose from 2.73 million won to 2.87 million won, a 5.1% increase.
Van Cleef & Arpels simultaneously raised prices for high-end jewelry products sold in South Korea at the beginning of this year.

A jewelry industry insider commented:

According to the industry, gold purity is determined based on a 24-part standard. Therefore, pure gold is called 24K, and the lower this number, the less gold content.
Products sold by major jewelry brands are mainly 18K, containing 75% (18/24) or more gold. 14K products contain 58.5% (14/24) or more gold, while recently introduced 10K or 9K products contain even less gold.

Meanwhile, international gold prices broke through $5,000 per ounce for the first time in history on the same day. Classified as a safe-haven asset, gold prices, after surging about 65% last year, continue to rise this year.

It is analyzed that the appeal of gold as a safe-haven asset alternative to US dollar assets has become prominent, while US external trade pressures and geopolitical tensions have intertwined to drive up overall precious metal prices.
The market predicts further rises in gold prices. Market analyst Ross Norman, in an interview with Reuters that day, forecast that gold prices could reach a high of $6,400 per ounce this year, with an average price around $5,375.