U.S. Jewelry Prices Plummet 5%

RAPAPORT... The U.S. consumer price index (CPI) for jewelry declined 5 percent year on year to 166 points in November and the reading slipped about 5  points from October's index. Jewelry price inflation often reflects heavy promotional activity at the retail counter during November and December due to the Christmas shopping season; however, this November drop of 8.81 points from one year ago was the steepest since records began in 1986.

The CPI for watches, meanwhile, was flat in November at 121.33 points, but the reading was 3 points lower than  October's index.  

Market prices for precious metals and diamonds during November remained under pressure with platinum prices running about 9 percent lower than one year ago, while gold prices were basically flat.

However, the RapNet Diamond Index (RAPI™) -- the global benchmark for polished prices -- plummeted 7.5 percent year on year  for 1-carat diamonds. RAPI for 3-carat diamonds fell 5.5 percent and RAPI for 0.30-carat diamonds slipped 0.4 percent, but RAPI for 0.50-carat polished goods increased 3.2 percent compared with one year ago.

By comparison, the CPI for all product categories in November increased 1.3 percent year on year to 236.15 points.