True cost of xmas index - Stool Pigeons Wire Message Board

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True cost of xmas index basket of 12days of xmas goods&services Rate Topic:

#1 joestool

Stock Proctology Intern

Group: Members
Posts: 266
Joined: 04-May 01

Posted 09 December 2003 - 06:02 AM

Each year since 1984, PNC Advisors has provided a tongue-in-cheek economic analysis, based on the cost of the goods and services purchased by the True Love in the holiday classic, �The Twelve Days of Christmas.�

PITTSBURGH, Dec. 8, 2003 � While stiff import competition is driving deeper discounts on merchandise sold in the United States, skilled labor cost is on the rise, resulting in a 16 percent increase in this year�s PNC Advisors Christmas Price Index � the biggest jump the Index has seen in its 19-year history.

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Most suprising in spite of overall record inflation, they show the price for "five golden rings" dropping 5.6% from $382.50 in 2002 to $361.25 in 2003!

Kitco shows London gold fix for 1st week of December as 316.45 - 325.75 in 2002 and 400.25 - 402.40 in 2003. That's about a 25% increase in POG which means that the retail jewelry markup must have fallen by more than 30%! A 500% markup over POG in 2002 might only be a 350% markup in 2003...that's a HUGE drop in retail pricing power and one hell of a dose of asset deflation!

Blue Nile currently lists a plain ladies 2.5mm 18k gold wedding band for $95 but I don't have any historical jewelry prices for last year. I did do some serious diamond shopping 2 years ago and and just a quick on-line search for diamonds of similar specifications to what I purchased then seems to suggest the prices for higher end 1ct+ diamonds may have fallen by about 20%! :shocked