Platinum Jewelry Market Growing
With the rising price of gold, the closed price gap between 14K and platinum offers consumers more options in their price range.
The market for platinum is expected to grow at a CAGR of more than 3 percent globally through 2025, according to a world platinum market report released in September by Research and Markets.
Stringent environmental regulations to reduce hazardous emissions from automobiles (with platinum used for exhaust systems), and increasing demand for platinum jewelry are driving the market, according to a statement regarding the research released in January.
The Asia-Pacific region represents the largest market for platinum and also is expected to be the fastest growing over the next few years, attributed to increasing consumption from countries like China, India and Japan, finds the report, where demand is mainly for platinum jewelry.
China accounts for about 50 percent of the total platinum consumption is in the jewelry segment, finds the report, whereas India’s demand was estimated at about 6 percent demand in the jewelry sector, with lots of room to grow.
Globally, growing aspirations towards jewelry among Millennials is expected to drive the platinum jewelry market, abroad and in the United States.
Platinum jewelry, like other jewelry categories saw sales fall in the first half of 2020 with the onset of the pandemic, and rebound in the third and fourth quarters.
Kevin Reilly, vice president of Platinum Guild International USA (PGI-USA) told JCK magazine in September: “It felt like the industry rallied and had done a great job of managing their business. The feedback we’ve heard is that the increase in platinum business was significant.” He added that the platinum bridal business recovered, helped by the fact that metal was trading for half the price of gold.
Platinum Crowns & Rings
PGI cites demand up for platinum crowns (heads) in the bridal category, attributing continuous push by more in the trade, as well as competitive platinum prices. A number of brands are using and promoting platinum, inspiring sales for this precious metal in the American jewelry market, including A. Jaffe, Original Design Inc (ODI), and ArtCarved and Diana, Frederick Goldman brands, as well as major jewelry retailers like Helzberg Diamonds.
“Helzberg has been consistently successful in offering their customers platinum crowns as the preferred setting for diamond and gemstone rings, as well as featuring a platinum engagement and wedding ring collection in select stores,” shares Jill Moynihan Helsel, marketing director for PGU USA. “Helzberg sales professionals understand the unique benefits and characteristics of platinum and effectively communicate that to their customers.”
In fact, Helzberg just collaborated with well-known British designer Jenny Packham to create a collection of engagement and wedding rings featuring lab-grown diamonds set in platinum, launched just in time for Valentine’s 2021.
There has been an increase in platinum ring orders this year for ODI, concurs Valerie Fletcher, vice president of design and product development for the NYC-based manufacturer. “We’ve been filling a lot more orders for larger diamond centers and total weights, higher quality engagement rings and wedding bands, and more platinum!”
Fletcher says couples are spending more on their wedding rings that will last a lifetime, and less on the dress and event that might only be seen on Zoom. She reports pear-shaped diamond centers and platinum rings trending in custom orders. With the rising price of gold, she says the closed price gap between 14K and platinum offers consumers more options in their price range.
Platinum Jewelry Essentials
Promoting the concept of platinum crowns to ensure the security of important diamonds, gemstones and pearls is just as significant for timeless wardrobe staples like stud earrings and solitaire necklaces that we wear everyday.
The trend for personalized jewelry is easily translated in platinum jewelry, says Moynihan Helsel, like charms and pendants featuring initials, birthstones, zodiac signs, and other iconic symbols. Engagement ring brand A. Jaffe, which offers platinum as an option for all of its ring collections, does the same for its Maps by A. Jaffe charms collection, a personal heirloom keepsake in this precious metal.
Major Chinese retailers are seizing on this trend, promoting non-bridal platinum charm and pendant collections to great success.
The market for platinum jewelry beyond bridal is a new frontier that manufacturers are exploring. Moynihan Helsel is optimistic that the market will expand for platinum, a compelling precious metal and design element across jewelry categories.
PGI continues to develop strategic partnerships to increase platinum’s share of gem-set and studded jewelry, she notes, as well as to improve platinum jewelry manufacturing for lighter weight fine fashion to grow new product segments.
Imagining the future in platinum jewelry design, PGI recently launched a partnership with Pratt Institute and its jewelry design department for a design competition that takes students from rendering through production.
“We could not be happier with the results of this inaugural program,” shared Kevin Reilly, vice president of PGI-USA in a statement released January, as the competition was moving on to the production phase. “The designs submitted truly pushed the boundaries of innovative platinum design, and have us excited to watch these talented young designers progress in their jewelry journey. The future of platinum jewelry is truly bright.”