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PGM
Platinum jewelry has now become
both formal and informal and finds preference for everyday wear as well
as special occasions like marriages etc. New designs, rich white color,
anti-allergic properties are making platinum jewelry a popular by media
coverage.
The second major application of platinum
group metals after auto
sector is in the jewelry sector. The jewelry industry
is already well supported by media and with new designs and fashions
taking the front stage, platinum jewelry is already making inroads into
the consumer market. The exposure to platinum jewelry is now on a very
high note and the response is like never before. China has already
overtaken traditional Japan as the major consumer of platinum jewelry
and other countries are following suit. The jewelry sector is expected
to play a major part in the coming years, with the population of
upwardly mobile younger generation on the increase.
Jewelry sector accounts for nearly
40% of total platinum consumption and this is growing.

PROPERTIES
What makes platinum
jewelry precious?
platinum alloys
Purity
Platinum jewelry come out with a high degree of purity compared to other
metals. In the US purity is about 90-95% and it can be - % as a minimum
in other countries. Platinum jewelry is so exclusive that it comes out
with special markings. In the US it is marked PT or PLAT and in Europe
950 or PT 950. An authentic jewelry piece comes out with tamper proof
certificate, dealer authorization, a guarantee card and an unique code
for each piece.
Flexibility
Platinum has all the properties a jewelry designer will look for. It is
flexible, ductile, malleable and sectile, offering the designer total
freedom to experiment with. Platinum can be repeatedly heated and cooled
without hardening or oxidation effect. Platinum jewelry is increasingly
appealing to sections of people who hitherto were not attracted to
platinum on account of new styles and designs coming out for both formal
and informal occasions.
Superlatives
Platinum is very hard and ideal for securing diamonds and precious
stones in jewelry. Apart from the strength, the settings can be both
smaller and thinner. Platinum with its rich white luster compliments the
brilliance of precious stones and diamonds and adds elegance to the
piece of jewelry. Platinum finds ideal use for everyday wear since it
does not tarnish. It can also be worn by those with sensitive skins and
those who suffer allergic reactions from wearing other metal. The
rarity, prestige associated with it, and being considered timeless piece
make platinum an increasingly popular choice as bridal jewelry
particularly wedding rings, bands and chains.
Demand
Platinum jewelry is gaining a rise in popularity for the past two
decades. The demand for platinum jewelry is also aided by increasing
media coverage projecting individuality associated with platinum
jewelry. Bridal jewelry in
North America and Japan is gaining more appeal. Platinum jewelry is also
becoming popular in Asian countries as its color contrast is found
attractive. Platinum jewelry demand in China has already grown to a
level that it has overtaken Japan and is currently the largest
platinum consumer for jewelry in the world.

MILESTONES
|
Year
|
Event |
|
1960 |
Platinum demand restarted in
Japan |
|
1970 |
Revival of European market
mainly in Germany |
|
1980 |
revival of European market
mainly in Italy |
|
1990 |
Revival of European market
mainly in Switzerland and UK and gradually in North America |
|
1995 |
Surge in demand in China |
|
1999 |
Boom in Chinese platinum
market |
|
2002 |
China attains the number one
position in platinum jewelry |
PLATINUM DEMAND
|
Period |
1998 |
1999 |
2000 |
2001 |
2002
|
|
Platinum / '000 ounces |
|
Demand by application |
|
Jewelry |
2430 |
2880 |
2830 |
2550 |
2780 |
|
Demand by region |
|
Europe |
150 |
185 |
190 |
170 |
170 |
|
Japan |
1290 |
1320 |
1060 |
710 |
795 |
|
North America |
270 |
330 |
380 |
280 |
310 |
|
Rest of the World |
720 |
1045 |
1200 |
1390 |
1565 |
|
Palladium / '000 ounces |
|
Demand by application |
|
Jewelry |
235 |
235 |
255 |
230 |
265 |
|
BY REGION
|
|
Europe |
50 |
50 |
45 |
35 |
35 |
|
Japan |
105 |
105 |
150 |
140 |
170 |
|
North America |
10 |
10 |
10 |
0 |
0 |
|
Rest of the world |
70 |
70 |
50 |
55 |
60 |

China
The elegance of platinum has caught-on more and more youngsters feel
that they can afford it. China is importing about 1.47 million ounces
which is about 25% of the entire output of platinum in the world (source
Johnson Matthey News). Much of this imported platinum is used in the
jewelry sector. Though platinum jewelry has been finding more takers
showing a 13% jump from the previous year, the growth is likely to be
leveled in the coming years. However the Chinese jewelry market is more
optimistic and expects a phenomenal growth by the year 2010.
Jewelry market in China has been growing consistently over the years
helped by the growth in economy. The media thrust on marketing is viewed
as encouraging by the industry. The trend of replacing gold by platinum
appears to be catching with the upward mobile.
Trend
Platinum jewelry demand
|
Europe
|
To flatten |
|
Japan |
+3.5% maintaining
|
|
China |
13% - could level off in the coming years. By 2010. China is
planning to be a substantial exporter of platinum jewelry
|
|
Upward trend in India, Malaysia, Indonesia and Brunei
|
NOTES
Malaysia
The trend of the young generation preferring platinum jewelry is also
seen in Malaysia. De Gem Bhd indicated of a possible 10-15% increase in
turn over by December 2003. The company is also planning outlets in
Indonesia and Brunei. Because of increasing popularity of platinum
jewelry and plans to open additional outlets, the company is considering
a research and development facility to create new designs..
India
India traditionally is the biggest consumer of gold. Recent trends
indicate that the jewelry market is becoming price conscious.
Traditionally, gold is a source of investment and also prestige. Gold
jewelry is also an integral part of any Indian household.
Fashion jewelry has started
attracting younger generation in the recent past. The proportion of
working women is also on the rise especially in the metros and major
cities. Along with employment, the new found financial freedom is
encouraging to go for fashion jewelry. In addition to the traditional
jeweler, India,Burma, New
Guinea, Kazakhstan, Greek, Hawaiian, African, )
lifestyle shops have started displaying fashion jewelry which gives a
wider exposure. The recently found financial freedom combined with easy
payment options are bringing fashion jewelry within reach of many. The
younger generation is also willing to experiment with new designs.
Platinum jewelry market is expected to grow in the coming years.
Source - Johnson
Matthey
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