The Platinum Guild's Campaign
Platinum now more attractive for jewellers
Platinum Guild CEO James Courage says platinum is at its most affordable
price ever and Aussie jewellers should look to its benefits.
The incredible surge in the price of gold over the last decade has taken it into the same ballpark as the historically supreme metal, platinum. Late last year gold even leapfrogged platinum’s price, and the Perth Mint is still currently pricing gold above platinum. It’s pretty incredible when you consider platinum is around 30 times more rare than gold.
James Courage, CEO of Platinum Guild International, the organisation set with the task of “inspiring a passion for platinum that ensures it is the precious jewellery of choice” puts the gold price surge down to the economic times. Courage was in Australia last week to gain a better understanding of the Australian jewellery industry.
“I think one of the reasons the gold price has gone up is the [economic] uncertainty we are living through in many markets,” he told Jeweller. “It is a store of value, particularly in the last couple of years as an investment because there haven’t been many other investments that have had an upward trend to them.”
Naturally this has made gold more expensive for jewellers and consumers, which in turn has helped spawn silver’s explosion as a leading metal used in jewellery. The other consequence of gold’s price rise is the lavish and rare platinum is now comparatively cheaper than any time in recent memory.
“Jewellers and consumers still see platinum in the premium position so they think it’s priced super premium,” Courage explained. “Today you have that opportunity where it’s the same price as gold.”
The exclusive metal is now more attainable and the Platinum Guild wants to see that convert into higher sales of platinum jewellery. Courage says the white metal’s key jewellery market is still bridal.
James Courage, CEO of PGI
“We’ve been promoting it in bridal since the Guild started ,” he said. “People very much like the pureness of platinum and it has a strong emotional resonance with the consumer; it’s often the preferred setting for the engagement ring or the wedding band, and that has a long history associated with it.”
Currently 29 per cent of the demand for platinum is for jewellery, with the remaining 71 per cent being taken up by industrial uses.
Courage said a number of markets around the world now had a white metal preference where platinum was the premium choice, however the high price of platinum had previously restricted that choice from being fulfilled. He said the parity of prices between platinum and gold should now change the level of demand for platinum.
“There are physical characteristics that support platinum and there are emotional characteristics that support platinum as well,"Courage explained. "One of platinum’s crucial plusses is that it’s usually 95 per cent pure, though it can go down to 85 per cent in the ISO but in most markets its 95 per cent pure. You’re always getting a pure metal product, which you’re not always getting with gold.”
Visit the Platinum Guild's website: www.preciousplatinum.com
Posted April 03, 2012