The first, and most prominent trend is the instability-driven increase in prices. It’s important to note that this year’s increase in prices is largely reflective of the climbing cost of raw materials.
Essentially, marked pricing changes as quickly as the gold prices on Kitco fluctuate, with retailers feeling the need to be extremely flexible on pricing – to the point of losing money on some sales.
As we’ve written about before, the prices of diamonds grew even more rapidly than gold, “fueled by surging demands from China and India.” At last week’s Hong Kong Gem & Jewellery Fair, Raymond Lee Jewelers saw first-hand the effect of high diamond prices on sales.
Polvy points out how difficult this makes stocking holiday inventory; the cost of goods will continue to rise, and still weary consumers are only expected to drive holiday sales up 2 – 3% from 2010. And, “A wedding ring that retailed for $1499 in the 2010 holiday season will likely be priced $2000 this season. For consumers, that’s a significant sticker shock,” says Polvy.
To read Polvy’s full assessment of the 2011 Holiday trends, click here.
Rising prices in retail stores will likely be painful on consumers eager to include fine jewelry on their holiday shopping lists, and Raymond Lee Jewelers remains committed to providing unmatched value on luxury estate jewelry, preowned designer jewelry, and preowned luxury watches during the entire year, not just the holidays.
Liz for Raymond Lee Jewelers.
- September Hong Kong Jewellery & Gem Fair: Rapid Reporting from Raymond Lee Jewelers (raymondleejewelersblog.com)
- Hong Kong Jewellery & Gem Fair: Rapid Reporting at the Half Way Point. (raymondleejewelersblog.com)
- Who What Wear Daily: Chokers are Back (raymondleejewelersblog.com)