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Ringflation: Rising commodities may hurt Tiffany

Diamond ring
Akio Kon | Bloomberg | Getty Images

Rising prices for gold, platinum, silver and soon, diamonds, will start to hit the bottom lines for Tiffany & Co. and other jewelers, according to one Wall Street analyst.

"We believe the commodity cost benefit to retailers will 'wind down' in about 12 months, and will likely be a modest headwind to margins in 2H17 (less than 20 basis points for both companies)," Wells Fargo senior analyst Ike Boruchow said in a Sunday note on Tiffany and Signet Jewelers.