# The 12 Days Of Christmas – A Lesson In How a Complex Appraisal Can Go Astray

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 Two turtledoves 125.00 1,375.00 Three French hens 150.00 1,500.00 Four calling birds 519.96 4,679.64 Five golden rings 645.00 5,160.00 Six geese-a-laying 162.00 1,134.00 Seven swans-a-swimming 6,300.00 37,800.00 Eight maids-a-milking 58.00 290.00 Nine ladies dancing 6,294.03 25,176.12 Ten lords-a-leaping 4,766.70 14,300.10 Eleven pipers piping 2,427.60 4,855.20 Twelve drummers drumming 2,629.90 2,629.90 Total \$24,263.18 \$101,119.84

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.