Prices

A diamond is forever. Too bad the market for it isn't. Prices of the precious gems have dropped like a rock in recent months as the worldwide economic downturn strikes fear in the hearts -- and wallets -- of investors, collectors and prospective bridegrooms. That, in turn, has enshrouded this little corner of Europe in an abiding gloom.

Virgin America, the upstart carrier founded by British billionaire Richard Branson, began flying between Orange County's John Wayne Airport and San Francisco International Airport on Wednesday for as little as $49 one way. The launch of the low-fare service began with a glitzy party on the airport tarmac where celebrities, such as rapper MC Hammer and the cast of reality show "The Real Housewives of Orange County," welcomed passengers on the first flight from San Francisco.

A wooden roller coaster at Six Flags Magic Mountain will fire riders down a 100-foot drop. An exhibit at the San Diego Zoo will feature elephants, camels and 4-foot rodents in a new habitat the size of a soccer stadium. A musical comedy at Universal Studios Hollywood will star the Creature from the Black Lagoon. As always, Southern California theme parks are ready for summer. But don't expect much new compared with previous years at nearly every local theme park, zoo and aquarium.

Consumers, daunted by the recession, hit the pause button on buying video games in May. The game industry last month racked up $863.3 million in sales of games and consoles, the first time since August 2007 that monthly sales came in less than $1 billion, according to a report released Thursday from market research firm NPD Group Inc. Sales of game consoles took a big hit last month, dropping 30% to $302.5 million from $433 million in May 2008.

More business travelers are moving to the back of the plane, downgrading from business- and first-class seats to coach and adding to airline financial woes. But fliers who still can sit in the front of the cabin are finding some of the best deals in recent memory: Premium fares are down more than 20% as airlines discount tickets to fill seats, according to the airline trade group International Air Transport Assn. By comparison, economy fares are down about 15% on average, the trade group said.

The price of sugar on world markets has soared this year, prompting a coalition of the nation's largest food manufacturers to warn of a pending shortage and to ask the Agriculture Department to ease quotas on imports. But although prices have risen domestically and abroad, analysts say fears of empty supermarket shelves are overblown and that the gloomy outlook of big food companies is really part of a larger effort to pressure the government into dismantling sugar trade barriers.

Abercrombie & Fitch Co. raised eyebrows last Christmas when the teen retailer insisted it would ride out the recession without resorting to widespread price-slashing. Then came months of massive double-digit sales declines and dwindling store traffic as shoppers defected to competitors that sold similar clothes at more affordable prices. Industry experts wondered whether the company was risking its business in its attempt to uphold its brand image. At the same time, Abercrombie was criticized for missing several fashion trends, for instance, waiting too long to offer casual dresses and relying too heavily on its graphic T-shirts.

Los Angeles Mayor Antonio Villaraigosa launched a prescription-drug discount program for city residents Monday, following up on a campaign promise he made five years ago while running for mayor. At a senior center in Montecito Heights, Villaraigosa said the city had contracted with Ohio-based Envision Pharmaceutical Services, which will negotiate with pharmaceutical companies to obtain lower prices for residents who carry discount cards. The discounts, which could range from 5% to 40% depending on the medicine, will be available at about 1,500 Los Angeles pharmacies that participate in Envision's network.

A price war between Southern California's big supermarket chains is heating up. The region's big grocers, already having trimmed prices for much of the year, are gearing up for a new round as they seek to win back budget-minded customers who have migrated to discounters such as Wal-Mart Stores Inc. and Target Corp. Vons will announce Wednesday that it is lowering the prices of about 5,000 items -- about 15% of the store -- at its 274 stores in the region. Ralphs is also launching what it calls a "significant" reduction in produce prices and other often-purchased goods.

The price of gold surged for a second day Thursday, just falling short of the $1,000-an-ounce mark. Near-term futures in New York rallied $19.20, or 2%, to $995.80 an ounce after gaining $21.90 on Wednesday. In the last two years gold typically has attracted heavy interest when the dollar has slumped or when the stock market has tanked, although the metal dived with virtually all other assets in last fall's global meltdown. On Thursday, however, stocks rallied modestly and the dollar was little changed against other major currencies.