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Price-friendly platinum might find new fans

By Catherine Dayrit
August 07, 2009
Calderoni's "Eleonora" earrings in platinum with 1.78 carats of diamonds; suggested retail price is $16,840. (877) 326-6900

In the fall of 2008, a drop in platinum prices cracked open the door of opportunity for jewelry sales, with the per-ounce price nearly as low as that of gold. Though consumer confidence remains weak, the bridal market, especially, pushes on, with brides still eager to tie the knot with rings that will keep their white tone and hold up to everyday wear and tear.

Design Trends: Platinum is still a mainstay for everything from simple solitaire engagement rings to one-of-a-kind couture masterpieces. Aside from metal-only wedding bands, most platinum designs feature at least a smattering of diamonds or gemstones, perhaps contributing to the often elevated price tags that accompany platinum jewelry. Many go-to designers for red-carpet jewelry also craft their uber-pricey creations in platinum, reinforcing the metal's aspirational qualities and stately rank.

Price Points: Platinum prices have begun a slow and steady ascent since dipping below the $800 per-ounce mark in October of last year. Yet despite the upwardly inching price (about $1,262 at press time), platinum remains at a relatively affordable level, especially considering that platinum sold at about double the price in March of 2008, at $2,300 per ounce.

Marketing: Platinum Guild International (PGI-USA) has been active on the marketing front, sponsoring platinum design competitions at industry trade shows and hosting red-carpet jewelry previews, all in an effort to increase awareness of the metal. In addition, the worldwide marketing arm for platinum jewelry provides retailers and sales associates with a number of educational opportunities, including its first online training program, "Platinum First," a 30-minute program (details at Platinum Learning.com). As for consumer outreach, PGI-USA recently launched a refreshed lifestyle advertising campaign that puts greater emphasis on reaching the consumer on an emotional level. The campaign will still use its well-known tag line, "Your love has just gone platinum," in advertising and sponsorships, as well as for in-store and online promotions.

Supply and Demand: Global supplies of platinum declined by 9.5 percent to 5.97 million ounces in 2008, and demand dropped 5 percent to 6.35 million ounces last year, according to the "Platinum 2009" report from metals consultancy Johnson Matthey. Supply was depressed by a flurry of challenges to Russian and South African suppliers, including everything from bad weather and geological issues to safety closures, smelter problems and a shortage of skilled staff. Jewelry demand for platinum decreased by 6.2 percent to 1.37 million ounces in 2008.

To see the latest platinum designs from bridal to couture to fashion under $5,000, download The Platinum Club.
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