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Geopolitics may finally be catching up to the luxury jewelry market.

In a recent interview with Bloomberg, Cartier CEO Cyrille Vigneron signaled that the brand may increase its prices 3-5% to offset, among other things, the higher cost of materials like diamonds, gold, and platinum.

Some believe that consumers could absorb price increases for fine jewelry because they are already doing that for increased travel costs. Travel and luxury goods compete for households’ discretionary dollars. Last month Signet CEO Virginia Drosos stated that consumers of luxury jewelry could absorb price increases because they are already doing so for travel.

Vladimir Putin’s war against Ukraine has brought increased speculation concerning the diamond and gold industries. Some experts believe that sanctions against Russian-owned Alrosa may create supply shortages against ever-increasing demand for fine jewelry, resulting in increased prices for consumers. 

Cartier is one of the top brands for Richemont, which, alongside Pandora and others, recently left the Responsible Jewelry Council (RJC) over its inaction on Alrosa. Established in 2005, the RJC now has over 1,500 members and sets sourcing and supply-chain standards for the jewelry and watch industries. 

Richemont provided the following statement: 

Richemont and its Maisons do not wish to be members of an industry organization which includes companies that contribute to financing conflicts and wars.

Alrosa later suspended its RJC membership.