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Stock Prices

 

Stock Prices

Stock price changes and not the actual price of stocks

Why it matters

The USA has a very high proportion of assets -70 percent - reported as held in financial form. It also has a larger number of active shareholders than most other countries. Furthermore, America has by far the greatest number of members of the top 1 percent global wealth group, and accounts for 41 percent of the world's millionaires. According to the Credit Suisse 2014 Global Wealth report, the number of America-based Ultra

High Net-worth individuals (UNHW) with wealth above $50 million is eight times that of the next country,
China.

Most of the financial wealth of rich folks is held in the form of stocks traded at the two major stock exchanges located in New York. As a result, positive performance of stock markets leads to good sales of luxury jewelry at the top end.

Moreover, the financial and insurance industry accounts for 30 percent of all top earners in USA. Top earners buy the expensive jewelry pieces that cost more than $10,000. For this reason, it is not a coincidence that the North Eastern region dominates sales of fine jewelry by value. Some of the bonus money from a good year of financial trading is channeled into diamonds.

According to De Beers‘ Diamond Insight Report 2014, in 2013, female consumers with household income of over US$150,000 accounted for eight per cent of the consumer base for diamond jewelry, but in terms of actual acquisition this group accounted for 14 percent of diamond jewelry pieces and 33 per cent of sales by value.

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