This December bodes as a bad season for jewelry stores and online sales. Situations like this happen about once everything 25 years. Even the financial crisis of 2007-2009 had less of an effect than the fear of terrorism.
Not life as usual
I experienced a similar phenomena after 9 Sept 2001. The economy frozen. Deep discounts across the retail sector had little effect on buying.
Terrorist freeze people's buying habits like an airline crash. Check out the travel spending after a plane crash. I have. I don't consider it a pretty site for the economy. Even though the numbers indicate the safety of airline travel, fear grips travelers who take to their cars and the poor odds of fatalities.
2012 United States (most reliable statistics)
Automobiles
Total fatalities 33,561
2,969 Billion Miles Traveled
Airlines
Total Fatalities 0
Incidents 27
Billions of Miles Travel (Yet to be determined)
Anticipatory Anxiety
Paralyzing fear occurs when we play out scenarios in our thoughts. Fear freezes. That's how terrorism works. The media trumps this us as thousands of publications compete for readers. Show a mass grave in ISIL held Syria or Iraq or a beheading and the media goes wild.
Listen and you will hear your thoughts beginning with two words: "What if..."
Results
Fluctuations in Supply vs Demand cause price differences. Load up for Christmas and if buyers have abandoned Malls and eBay, prices go into a free fall.
Believe me?
My family has engaged in the jewelry business since 1905. The deregulation of gold increased dramatically my family's wealth. During the gasoline fears of the 1970's, US jewelry sales plummeted. My cousin had filled the shelves beyond normal. In terms of sales, those years were disasters.
What did they do? They sold the gold to smelters, sold the stones separately and watched the prices rise. Gold went from $35 per ounces to $400 -$800 depending on the day. It wasn't such a bad Christmas after all.
Run a search on Parnis Watch Fixed Price on eBay Click Here
Now run a similar search on Auctions Click Here
I also noticed that the typical 4500 listings have shrunk to 833 as of December 12, 2015.
That says volumes about the terrorist effect.
That's All I have to Say About That
-Forrest Gump