> Market demand for diamonds during October, as the industry was heading into the all-important Christmas holiday selling season, was enough to keep polished diamond prices in the trading centers from sagging, but it wasn’t strong enough to push diamond prices higher.

> During 2008, specialty jewelers’ advertising expenditure ratio – ad spend as a percentage of revenues – ran at roughly the same level as in 2007: about 2.4 percent of sales. Adweek, which tallies total advertising expenditures by industry, reports that overall specialty jewelers’ ad expenditures were $684 million in 2008. While this was down from 2007’s ad spending of $717 million, it was flat at 2.4 percent of specialty jewelers’ sales.

> The recessionary environment continues to take its toll on retail jewelers in the U.S. market. For the first nine months of 2009, the census of retail jewelry firms has been reduced by a net (openings minus closings) of 372 retail jewelry firms – 1.6 percent of the total jewelry firms in America – notably more than the net loss of 308 jewelry retailers for the same nine-month period a year ago.

> There are signs that inflation is returning to the U.S. jewelry industry. Both key broad indicators – the Jewelry Consumer Price Index and the Jewelry Producer Price Index – spiked higher in September, and there are signs that inflationary pressures continued to build in October.

> The average ticket for most U.S. jewelers in 2008 was nearly flat when compared to their average ticket for 2007, according to a survey recently completed by IDEX Online Research. In 2009, it appears that the average ticket for diamond jewelry in the U.S. market has declined by about 10 percent on average. Here are the highlights of this survey:

> “Cautious optimism” seems to be creeping back into jewelers’ vocabulary, and industry sales numbers back up their brightened outlook. August jewelry sales were “less bad” than some months earlier this year. Further, the U.S. Department of Commerce issued revised numbers that showed previous months’ preliminary jewelry sales trends were too pessimistic.

> Jewelry is not a fad product. Archeologists have solid proof that it has been around for at least 50 millennia – and some would now argue that jewelry has been around for at least 100,000 years.

> The U.S. retail jewelry industry remains highly fragmented, with an overwhelming number of small merchants operating firms whose annual sales are under $2.5 million annually.

> Steady and consistent consumer demand for polished diamonds in the U.S. and Far East is driving a need for rough diamonds. A small Diamond Trading Company (DTC) Sight and high prices in Russia have resulted in a feeling that there is a shortage of goods. This is true in certain areas, mostly in rough resulting in mid-priced 1-1.5 carat polished.

> How many specialty retail jewelers are going to close this year in the U.S.? IDEX Online Research frequently receives that question. The answer: not as many as you might think!

> Global polished diamond prices seem to be stuck in a very narrow price range. There is certainly not enough demand to push prices higher, and while they haven’t moved lower, our sense is that any minor shock or surprise could send polished diamond prices skidding lower.

> Harry Winston retail sales remained very weak in the second quarter, similar to other high-end luxury jewelers. Unfortunately, in the current recessionary environment, shoppers who would drop several hundred thousand dollars on a piece of jewelry have retreated to the sanctuary of their homes, awaiting a recovery in their net worth.

> Inflation at the jewelry supplier level remained moderate in August, while retail prices of jewelry experienced modest deflation. At the supplier level, inflation has bounced around over the past few months, but it is still very low, when compared to a year ago. Higher precious metals prices are primarily driving the Jewelry Producer Price Index (JPPI).

> The summer doldrums have set in at retail in the U.S. market. Jewelry sales for July were below expectations, as were sales in other retail categories. Apparently, consumers were lounging around the pool, trying to cool off from the season’s heat and humidity, rather than shopping at their favorite merchant.

> Two very important themes emerged from Signet Group’s second quarter financial report: The U.S. stores had an increase in the number of transactions and gross merchandise margin continued to rise.

> Movado president and CEO Efraim Grinberg made two important comments in his address to investors relating to the second fiscal quarter ended July 2009: “We are beginning to see some stability in the market, particularly in the U.S. …” and “We are beginning to see more consistent orders from many of our retail customers in the U.S., after significant de-stocking late last year and early this year.”

> Many retail jewelers and jewelry suppliers overlook the sales opportunity that merchandise at an accessible retail price point offers. Instead, they dream of selling that special $20,000 ring or some other exceptional piece of fine jewelry.

> Lazare Kaplan International (LKI) reported its lowest fourth quarter results in more than a decade, $30 million. Annual sales are expected to total $192 million. The company may receive a “going concern” opinion.

> The model family of the 1950s, Dad is the sole earner and Mom is at home cooking three hot meals a day, is hard to be found in the U.S. these days. In this multi-part series, we are looking at what this means for jewelers. The good news: more women than ever before work outside of the home and now have the discretionary income to buy jewelry for themselves. The opportunity: age no longer a factor.

> Despite higher rough diamond prices and repeated attempts by rough diamond traders to push up diamond prices further down the pipeline, global polished diamond prices in August showed virtually no change from the previous four months, according to the IDEX Online Polished Diamond Price Index.