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.
Friday 11 December 2009
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.
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.
'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.
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