For the first time ever, the cost of the gifts featured in the Christmas carol, “Twelve Days of Christmas,” totals more than $100,000. Financial services company, PNC Wealth Management, just released its 28th annual estimate of the “Christmas price index”, a whimsical economic indicator that tallies the prices of the following basket of Christmas gifts from the well known carol.
Here is a summary of their calculation:
|Gift||One Set of Each Gift||Total Cost of Repeated Gift Sets|
|A partridge in a pear tree||$184.99||$2,219.88|
|Three French hens||150.00||1,500.00|
|Four calling birds||519.96||4,679.64|
|Five golden rings||645.00||5,160.00|
|Nine ladies dancing||6,294.03||25,176.12|
|Eleven pipers piping||2,427.60||4,855.20|
|Twelve drummers drumming||2,629.90||2,629.90|
In this article, we highlight a number of key factors (some might say errors) made in the calculation. While the Christmas price index is clearly not intended as a serious economic indicator, the article illustrates some of the most common problems with valuations generally.