A quick flash back for year 2004. Dow Jones reported that Tiffany & Co. almost have an 100% percent increase in net income for that year due to the popular product, Aber Diamond Corp. However, the shares and profit margins continued to reduce.

Tiffany & Co products are getting more popular in developing countries where spending power is strong.However, what causes a rebound of net profit? After looking through the profit and lost statement for Tiffany & Co, a high inventory cost in the precious metal and diamonds accounted for the shrinking profit margins. In additional, other factors affecting gross margins included a drop in sales due to a higher selling price, and lower margin in diamond jewelry section. The weak sales in Japan's Tiffany & Co also further reduces the profit. To add on, the import tariffs on Tiffany & Co products maunfactured in United States are high, and thus causes lower profit in Tiffany & Co.

Among all the category of products, Tiffany & Co's pearls was the only one category that showed growth and increasing profits. Eventhough, there seem to be a slow projected profit in Tiffany & Co, their silver products are still as popular ever it got started in year 1837. For more information of good Tiffany & Co products, do visit www.silverurban.com