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Richemont stays mindful on raising jewellery costs in spite of high gold costs

Cartier owner Richemont strategies to stay with its cautious technique to raising costs of jewellery despite the skyrocketing rate of gold in current months, and has no plans yet for rate boosts in the upcoming months, executives said on Friday.

We have actually been incredibly careful at preserving the real activity of our retail rates on the price of gold, Richemont ceo Nicolas Bos told experts on Friday.

As the high-end industry comes to grips with a recession and consumers become pickier about what they purchase, high-end brand names have actually faced concerns about whether cost hikes since the pandemic were pressed too far.

Gold costs have actually had an impact on purchasing expenses and margins of the group and the company, which likewise owns labels Van Cleef & & Arpels and Buccellati has over the past 12 months executed a few, but extremely minimal and extremely targeted cost increases in certain nations where there were currency exchange rate fluctuations.

We will continue to be cautious, said Bos.

The executive stressed the Richemont's efforts to keep cost differences in between regions as low as possible in order to limit sales to resellers, who buy products in one area with the intention of offering them in other places.

Worldwide geopolitical unpredictability, consisting of tensions in the Middle East, has sent out gold rates skyrocketing.

(source: Reuters)