Friday 11 December 2009

Platinum, copper, silver: Three Musketeers

With gold hogging all the limelight during the past one year, all other metals are being given a step-motherly treatment by investors. But, do that at your own peril.

Because, gold has all the glitter and glory but the real money lies in other metals. Among them three most important ones are platinum, copper and silver.

As everybody knows, gold has touched record prices in the recent past especially when it crossed $1,200 easily last week. Still, the rewards lie in other metals.

Take the case of platinum. Platinum’s price premium over gold has recently been shrinking, but platinum should continue to prevail, because it’s one of the rarest precious metals.

Platinum prices have climbed more than 36% from their low in early July to trade at highs above $1,500 an ounce, levels not seen in 15 months. A possible drop off in industrial demand is the major hurdle that platinum is facing, as growth in Chinese jewellery demand may not be enough to make up for the sluggish market. Any rebound in the auto industry, however, could pick up the slack.

Another metal in focus is copper. Copper prices have rallied to a 13-month high on a sliding dollar and Japan’s economic expansion. Copper made up 54% of the total value of Chile’s exports in October, up from 42% the same time last year. And, to add to that China is expected to account for 38% of the world’s copper demand by 2014, up from 28% in 2008.

In the case of silver also prices are set to go up in a big way. Silver prices have soared nearly 70% this year, compared with a 30% gain in gold prices. Despite the run-up, silver prices are actually 12% lower than a year ago. Nevertheless, investment demand is forecast to continue to prop up metal prices while industrial and jewellery silver consumption may remain weak this year.

These three metals look like good investments for the coming years. With news that gold is going out of fashion, especially in the wedding industry, other precious metals are set to take the lead. Platinum wedding rings and platinum engagement rings are the new trend, so investors should be looking to get involved in the platinum industry and benefit from its new popularity.

Chinese marriages 'fuelling platinum jewellery demand'

Platinum is replacing gold as the number one choice for wedding-related jewellery in China, the Global Times reported yesterday (26th November).

According to estimates, roughly 143 million babies born in the country during its third 'baby boom' in the 1980s are now at the age considered most appropriate for marriage.

Indeed, the Ministry of Civil Affairs confirmed that the amount of couples tying the knot in China last year hit 11 million, representing a 10.8 per cent rise from the 2007 figure.

Several circumstantial factors are thought to be behind this trend, such as eight being regarded as a lucky number and Beijing hosting the 2008 Olympic Games.

However, a more significant cultural shift is also occurring, with domestic sales of platinum reaching a record 54.4 tonnes this year, according to Johnson Matthey.

Zhang Jing, a consultant with a Beijing-based international education service, is among those who intend to mark their weddings by buying bride and groom platinum wedding rings.

"Gold has gone out of fashion. Only old people and the nouveau riche still buy it," he told the news provider.

Those sentiments were echoed by Chen Wei, a self-employed photographer, who noted that gold is "out of date" and that platinum "goes well with the white wedding gown".

Meanwhile, Caishikou, one of the largest jewellery stores in the Chinese capital, has also confirmed that it is benefitting from the ever-increasing demand for the precious metal.

The outlet recorded platinum jewellery sales of 400 million yuan in the first three quarters of 2009, which was equivalent to the figure for the whole of last year.

Prestigious platinum jewellery exhibit opens in California 4th December 2009

Award-winning platinum jewellery is on show at a new exhibit opened recently in the US, it was confirmed yesterday (3rd December).

'Best of Platinum' features 17 pieces created by leading designers from all over the world and is taking place at the Gemological Institute of America Museum in Carlsbad, California.

Platinum Guild International, the prominent marketing body which organised the exhibit, expressed its delight at bringing together some of the finest jewellery sculpted from the precious metal.

"The exhibit is a collaboration of design excellence and creativity," said CEO James Courage.

"We hand-selected each piece because it illustrates the high quality and versatility of platinum."

Among the countries to contribute pieces are China, Germany, India, Italy, Japan, South Africa and the US, with offerings from the Aqua Collection and the PlatAfrica competition also included.

Some of the designers whose works are being showcased are Danhov, Gurhan, Kirk Kara, Krikawa, Mark Schneider, Michael B and Tom Munsteiner.

In recent years platinum jewellery has become increasingly popular. It has a fresh and modern look, and many people are now choosing platinum engagement rings and platinum wedding rings over the traditional gold. The precious metal is of beautifully high quality, and in no way pales in comparison to other metals typically used in matrimony. The ‘Best of Platinum’ exhibit shows the recent celebration and appreciation of platinum jewellery, will be open for public viewing until 30th April 2010.

Wednesday 4 November 2009

AGTA Spectrum Awards Demonstrate Preference for Platinum

The 26th annual AGTA Spectrum Awards continued to illustrate the preference for platinum among the finest jewellery designers. Platinum Guild International USA (PGI-USA), which partners with AGTA for the “Platinum Honors” category of the competition, was pleased to see an increase of 11 percent in total platinum pieces among the 420 skillfully crafted designs entered in this year's competition. Additionally, out of the total number of winning designs across all categories this year, a resounding 58 percent of winners featured platinum, an increase of 32 percent from 2008. It is therefore clear to see that platinum jewellery is on the increase in the market, and becoming ever more popular and in vogue.

The AGTA awards work to support the talented designers and manufacturers working with this precious metal. Entries for the platinum category must be made of 90 percent to 95 percent platinum and are judged based upon beauty and design in addition to being judged against AGTA standards that they have a "broad-base consumer appeal and potential to generate positive publicity for natural colored gemstones." UK companies such as the Platinum Ring Company can use the AGTA awards to recognise new and fashionable designs for platinum jewellery, and use this information to create beautiful platinum pieces.

Norilsk's platinum and palladium output rises in Q3

Norilsk Nickel revealed on Friday (30th October) that its platinum and palladium production both increased on a year on-year basis during the third quarter of 2009.
Platinum output was 173,000 oz, compared to 157,000 oz for the equivalent period 12 months earlier, while production of palladium rose from 686,000 oz to 704,000 oz.

The company saw platinum production decline from 495,000 oz to 488,000 oz in the first nine months of the year, with palladium output down from 2.124 million ounces to 2.059 million ounces.

However, the world's largest nickel and palladium producer also confirmed that it has upped its full-year output targets for both metals from estimates made earlier this year, proving that in fact the purchase of platinum jewellery is on the increase.

It now expects palladium production to be 2.850 million ounces (up from 2.685-2.71 million ounces), while palladium output is predicted to be 668,000 oz, rather than 615,000-640,000 oz. This boost in platinum production will consequently feed more of this precious metal into the industry, and have a particular impact on the platinum jewellery trade. Businesses such as the Platinum Ring Company will benefit from this rise in production, and will be able to provide consumers with a more extensive collection of platinum rings and platinum wedding rings.

Wednesday 14 October 2009

Platinum Jewellery mixes in with the big boys

The up and coming diamond and platinum jewellery industry is looking likely to usurp the old, traditional gold jewellery. Platinum jewellery is increasing becoming attractive to high end consumers around the world; also helped by rising disposable income in many high growth countries.

Historically, gold has held the leading position in most of the jewellery markets worldwide mainly due to the value and tradability factor associated with it. Though the total consumption of plain gold jewellery decreased in volume terms, the overall sales of gold recorded gain in value term, according to a paper by Koncept Analytics based in Uttar Pradesh, India. This is no doubt primarily due to the ever increasing value of gold stocks. However, platinum jewellery retailers have seen a huge increase in their market share without an extravagant rise in stock prices.

Diamond, gold and platinum are the three main product segments within the jewellery world, which collectively account for approximately 95% of the global retail sales in value terms.

The past decade has witnessed the global gem and jewellery industry undergoing some significant changes and registering strong growth, on account of increasing income as well as demand from the emerging economies across the world. Among the various types of jewellery, plain diamond jewellery accounts for the largest share of the global jewellery market, followed by plain gold jewellery. An interesting newcomer is platinum jewellery, particularly platinum wedding rings, which has seen a recent rise in sales and is ever becoming a strong competitor in the industry.

Diamonds is one of the major natural resources in the world and is used in both jewellery and industrial applications. There has been significant growth in the demand for diamond-studded jewellery. This has been due to many reasons, one being the improving economy in the key diamond jewellery consuming countries and the vigorous marketing efforts of diamond companies. The major changes witnessed by the diamond industry in the recent years include rising demand for synthetic diamonds, as well as significant developments in the entire value chain process like consolidation, re-structuring of diamond processing, local benefaction, among others.

In the meantime, the demand for platinum jewellery has also increased in the recent past, not only in the developed markets of the US and Europe, but also in the emerging markets like China and India, due to the ‘elite’ tag and ‘high-end’ value attached to the metal. This has led to a greater production volume of platinum rings and platinum jewellery.

A geographic segmentation shows the US as the largest consumer for gems and platinum jewellery, followed by China/ India, the Middle East and Japan. In the European region, the UK and Italy are the largest consumers, with the former also being one of the world’s largest jewellery fabrication centres. The UK also has presence of some large retailers, such as the Platinum Ring Company, who also operate an extensive e-commerce platform.

The emerging markets (like China and India) that are traditional jewellery centres are showing signs of becoming the largest consumption markets by 2015, for both traditional as well as branded jewellery. The growth in the demand for gems and jewellery is attributed to the burgeoning middle and rich-class as well as the improving living standards. This is likely to increase the sales of platinum jewellery in these countries, which will also have a knock-on global effect. Nevertheless, the industry continues to face problems due to competition from other luxury goods, as well as socio-ethical issues.

On the whole though, most reports analysing the trends and challenges of the gem and jewellery outline the opportunities driving the present as well as future industry growth. The industry reports also focus on retail jewellery sales, trends, jewellery segments future potential of the four large consumers of jewellery – the US, China, India and the UK. As a whole, the future is looking good for gold and diamond jewellery, as well as the new player in the market – platinum jewellery.

Monday 28 September 2009

The Care of Platinum Jewellery.

Platinum is a pure and rare metal, which makes it unsurprising that has been a preferred choice for delicate and exquisite jewellery for thousands of years. Egyptians were the first to use platinum nearly three thousand years ago and South American Incas are known to have worked with it. Platinum jewellery in the United Kingdom has been around since the 1800’s, when it became remarkably popular with royalty.

Platinum jewellery is ideal for even the most sensitive skin since it is hypoallergenic, whether it be platinum wedding rings, platinum necklaces or otherwise. It is one of the most durable metals and its resistance to scratches on account of its density is astonishing. The sheer shine and brilliance of platinum makes it an ideal choice for a gift for someone you love. But the problem arises after purchasing the platinum jewellery: how does one care for such a beautiful item?

• Platinum jewellery should be stored separate from othe items of jewellery to avoid them getting scratched or damaged in any way. The platinum jewellery should also be kept in a jewellery box or chamois bag.

• Platinum jewellery, particularly platinum wedding rings, should always have adequate insurance. If you are unsure as to the value of your item, you should get the advice of an independent appraiser.

• Acquire a specialist cleaning kit for the platinum jewellery, and make sure cleaning is carried out periodically. This will ensure the quality and life-span of the jewellery. Platinum should be cleaned in the same way you clean other fine jewellery. Use a pre-packaged jewellery cleaner and soak the jewellery in a mild solution of 50% ammonia and 50% warm water and then gently rubbing it with a soft cloth. Note that harsh chemicals such as ammonia should not be used on gemstones other than diamonds because it may damage them.

• Remember that all metals can be scratched, so have a qualified jeweller polish and clean the piece at least twice annually and perhaps more often if scratches appear frequently.

• Also; adjustments, resizing, polishing and cleaning of your platinum jewellery should be provided by a trained bench jeweller. This is a very common problem when dealing with platinum in that not all jewellers have experience dealing with the precious metal.

• Be aware that over time platinum develops a natural patina that many people prefer over the "just polished" appearance of platinum. When this happens to your platinum jewellery you may take it to a qualified jeweller and have the item polished for that "high gloss" look or simply ask them not to remove the patina if that is your preference.

• Do not wear your platinum or other fine jewellery when doing home cleaning, gardening, or other types of heavy work or manual labour. Jewellery is designed to be decorative, not indestructible!

• Do not wear your platinum or other fine jewellery when working with bleach or other harsh chemicals. Although the chemicals may not affect the platinum, they may discolour diamonds and other gemstones and can cause an allergic reaction with your skin if trapped between the ring and your finger.

If all these are followed your platinum jewellery will look just as good as the day you bought it and will last for a long period of time.

Monday 17 August 2009

Platinum for Jewellery

Platinum is produced all over the world with South Africa (5,030,000 ounces), Russia (850,000 ounces) and the United States of America (385,000 ounces) leading the way in global fabrication. Other leading countries include Canada and Zimbabwe. The precious metal has a variety of uses within many industries including as an auto-catalyst and also within chemical, electrical, glass and petroleum production. However, the rise in popularity of platinum jewellery over the past two decades has been remarkable.

Japan has long been a traditional source of platinum jewellery demand, but double digit growth rates over the past several years in both China and North America now make these two markets highly important. Combined they count for over 40% of world total platinum jewellery demand. Platinum is prized the world over for its understated elegance and its tensile strength, making it the most secure high-quality metal for setting precious stones. The most popular choice of platinum jewellery is rings, in particular platinum wedding rings, and platinum coins.

This precious metal is highly valued for its beauty and purity together with its particular properties. Although in Europe and USA the normal purity is 95%, in certain countries the purity may be down to 85%. Platinum colour, strength, hardness and resistance to tarnish are some of the advantages of this metal in jewellery. It provides a secure setting for diamonds and other gemstones, enhancing their brilliance. Moreover, its flexibility is an important element for jewellery designers. Platinum jewellery is often regarded as the precious metal for the "New Millennium."

Other platinum group metals - palladium, ruthenium, iridium, copper and cobalt are commonly alloyed with platinum to optimise its working characteristics and wear properties.
Among the main advantages of platinum for jewellery fabrication are its strength and resistance to tarnish. It can be repeatedly heated and cooled without hardening and oxidation effects, while even the most slender sections of platinum permanently retain their shape, providing a secure setting for diamonds and giving jewellery designers a freedom of invention not always possible with other materials.

Platinum does place certain demands on the jeweller's skills. It requires high temperature melting and casting equipment (pure platinum melts at 1769C) and a scrupulously clean working environment. Careful attention to polishing technique is needed to achieve the highly reflective finish which shows a diamond or other precious stone at its best. This ensures that the customer will, when dealing with a well-established producer, always achieve value for money and a product of excellent quality.

Friday 3 April 2009

The Properties of Platinum Wedding Rings

It has been impossible to ignore the extent to which platinum wedding rings have taken the market by storm in the last few years as couples move away from gold towards platinum wedding rings. The properties of platinum wedding rings are impressive.

Platinum wedding rings have been around for well over a century now but it is only recently that they have emerged as one of the most popularity variety of wedding rings for couples on their big day. Platinum wedding rings are rapidly overthrowing gold as the wedding ring of choice for those tying the knot and when you consider the excellent make up and properties that are apparent with platinum wedding rings, there really is little surprise that this is the case. So far as precious metals go, platinum is considerably rarer than their gold counterpart and it is this sense of uniqueness that certainly draws a great many couples to desire platinum wedding rings to be exchanged at their ceremony. Platinum wedding rings are also a popular choice due to the immense strength and durability that they exhibit. Platinum wedding rings are very resistant to the elements and they will continue to look their best with a basic maintenance routine.

Thursday 2 April 2009

Welcome to The Platinum Post!

I will be posting articles over the coming months on the current trends of platinum jewellery as well as keeping you up to date with the current platinum metal prices.

I would be interested in hearing from readers with their comments and questions regarding platinum jewellery manufacture, platinum on the high street and any other topic related to platinum jewellery.