Diamond pricing in the recession

[Beacon]

I thought this article was interesting:

The Unthinkable: Price Cuts On Tiffany Diamonds

3:38 PM EST December 9, 2008
Pali Research said their checks show that Tiffany & Co. (NYSE: TIF) has made subtle cuts to engagement ring prices under 3 carats, a sign that even the rich are becoming price conscience.

The firm notes that Tiffany, like many luxury players, has historically not participated in promotions to get traffic moving, but in the current environment the company seems to be participating in price adjustments in a "measured manner." The firm said store checks indicates that price adjustments on engagement rings under 3 carats were implemented last Sunday. They said, depending on the ring qualities, discounts range from 5%-22%.

The firm said Tiffany is not advertising theses cuts, and sales representatives were very defensive and wanted to know how they became aware of the changes.

Pali asked the questions "Why cut prices if the consumer does not even realize they are getting a better deal?" They said they believe this is being done so Tiffany can communicate to the consumer they are doing what they can to be as competitive, as independent jewelers are being forced to advertise huge discounts to liquidate inventory.

 

[Dancing Fire]

as i said on other threads....diamonds prices will head south in the next few yrs until the world economy turns around.

 

[trillionaire]

Tiffany''s is overpriced, so they have lots of room to come down in price

 

[~*Alexis*~]

YEAH...Like ten grand lower!

 

[MichelleCarmen]

Apparently it''s a good time to buy their stock

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKrzWgHAq3ks&refer=home