A girl's best friend just got more expensive
Welcome to the holiday season-- it's going to cost you. With gold and diamond prices experiencing a steady price increase, you'll have to reach a little deaper into your pockets to bring home those shiny stocking stuffers. IDEX notes that polished diamond prices have boomed an additional 3.6 percent in November over last year's numbers.
The increase, according to IDEX, can be placed on three main factors: 1) strong demand for larger, better quality gemstones in most world markets; 2) higher rough diamond prices; and, 3) a falling U.S. dollar. The weak U.S. dollar is problematic in instances where mining companies and diamond suppliers have non-dollar denominated costs but collect revenues in dollar-denominated commodities. In short, the revenues are not rising as fast as the costs.
Financial analysts fear that the slowing U.S. economy and talk of a recesion in the coming year will take it's toll on the domestic polished diamond market. Projections show diamond prices continuing to soar through December and well into 2008. However, stones weighing in over the two-carat mark are still going strong and have experienced an increase in consumer demand throughout the diamond hike. So when stocking your display case for the holidays and beyond, you might consider throwing down the dough for a little extra bling. Pieces with larger stones will experience a lesser shelf life over the next few seasons.
Click here for more details on the IDEX's findings.
