In general, precious metal markets experienced robust sales, with prices rebounding from the lows they had experienced during the disruptive turmoil of 2020, the third of this year’s CIBJO commission’s special reports indicates.
Prepared by the CIBJO Precious Metals Commission, the report reviews the gold, platinum, palladium and silver markets for the year and looks at how they fared in a world economy in the shadow of a pandemic.
Because all four metals are considered safe haven investment assets, they experienced what appeared to be a temporary dip in value following a meeting in July of the Federal Open Market Committee, where the possibility of tapering, or a reduction in the pace of monthly bond purchases, was discussed.
A clear factor in creating robust market conditions was the strong recovery in jewellery demand and innovation in the development of new products and the savvy use of social media marketing.
The result of these innovations in China, CIBJO present Huw Daniel writes, “has been to revitalise sales of pure gold (23 karat and 24 karat) at the expense of 18 karat gold, as new levels of hardness permit greater design innovation at these more attractive purity levels.”
The CIBJO Precious Metals Commission president also noted a growing tendency by both government and nongovernmental organisations to maintain close scrutiny over supply chain integrity.
Daniel points to the upcoming review of the US Federal Trade Commission of its Green Guides, scheduled for next year.
“The Green Guides regulate environmental claims made across industries, not just in jewellery – and the FTC’s revision process will be the source of any changes it makes going forward,” he notes.
“In many ways, the pandemic has simply accentuated the roles these metals have always played in providing a safe haven to investors.
“Yet, we also see new trends emerging in new applications, with new gold and platinum jewellery alloys that are pushing the boundaries of design, ensuring their precious allure will continue to capture the eyes and hearts of a new generation of consumers,” Daniel says.