As the wholesale price of jewellery increases in the US, retail prices continue to show moderate inflation, a situation that could lead to jewellers going out of business, it has been claimed.

According to IDEX Online Research, the wholesale price on jewellery in the US has risen by 8.7 per cent in February, compared to the retail price which grew by 3.5 per cent.

Jewellers who act now could keep in business according to IDEX Online and the firm predicted a wide period of re-pricing this spring.

But bankruptcies among jewellers are expected to rise later in the year with most expected in early 2009.

Platinum jewellery grew by 11.1 per cent in February, causing the increase in the jewellery producer inflation rate and Index Online expects higher prices to continue.

"Our preliminary forecasts call for both jewelry consumer prices and jewelry producer prices to rise by about 7 percent in 2008," the research said.

As retailers and suppliers attempt to recoup large costs increases that have hit the industry, prices are expected to continue on an upward surge.

Source:

Jewelry Producer Prices Continue to Surge, but Retailers Aren’t Passing the Cost, 24/03/08
http://www.idexonline.com/portal_FullNews.asp?id=29886

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