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Platinum the pick among younger customers

By Michelle Graff
August 05, 2009
This platinum, diamond and 2.24-carat tanzanite pendant from Gumuchian retails for $6,000. Gumuchian.com.
Platinum jewelry isn't something retail jewelers ring up like mad at the register.

Sixty-three percent of panelists said platinum jewelry accounts for a mere zero to 10 percent of their sales, and the vast majority of respondents--95 percent--report that the metal makes up 20 percent or less of their total sales.

But when asked how the market has changed in recent years, it appears panelists have hope for the future popularity of this precious metal, which carries profit margins of 40 percent or more for 69 percent of survey respondents.

Youth movement

Consumer awareness of platinum has increased in the past five to 10 years, according to a number of panelists.

This seemed to ring especially true among younger consumers, according to several panelists.

"Young girls want engagement rings in platinum," one panelist wrote, while another predicted, "More young couples prefer platinum than yellow gold, it looks [like the] future is good for platinum jewelry, especially wedding rings."

Pricing play

After rising to nearly $2,300 an ounce in March 2008, according to Kitco.com, platinum prices hovered around $1,283 per ounce at press time.

Panelists were mixed on the best strategy for handling the metal's fluctuating price.

Several reported that they adjust the price of goods in the store to reflect the metal's market price, with one stating, "I do a lot more special order on platinum so I can adjust the price accordingly."

Others are just avoiding the metal altogether.

"It has been like a roller-coaster ride and has caused me to hold steady and not buy until it stabilizes," one panelist wrote.

To see the complete results of National Jeweler's Product Panel survey on platinum jewelry, download The Platinum Proposition.
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