The rise in overall fine jewelry sales in the US and the demand for smaller goods indicate that the US market was interested in jewelry this holiday season, but not in the higher-end costlier items. This is underscored by Tiffany’s 5% drop in same store sales during Nov-Dec. At Signet, its mid-priced Kay posted a 7.2% increase in same store sales, while at its higher-end Jared, same store sales were up only 2.7%. After a very difficult year, we are looking at some positive movement, focused however on smaller, lower-cost items. When considering this together with De Beers lowering prices on the pique goods, I must ask myself – have I1 clarity goods weighing less than 1 carat really become the heart of the diamond jewelry business? If so, what has happened to the luxury item that diamond jewelry has always represented? This trend is no cause for celebration.