Platinum Guild International (PGI) in the US is experiencing unprecedented demand for platinum jewellery this year, as PGI US’s strategic business partners recorded an 11% increase in platinum jewellery sales in the first quarter, a 48% increase in the second quarter and a 34% increase in the third quarter, compared with the same time periods in 2020.
This is in part due to the significant increase in weddings held, many of which were postponed from last year owing to the pandemic, PGI US president Jenny Luker says.
However, as the world heads into the holiday season and next year, indicators are that platinum jewellery will deliver a continued strong performance, and PGI expects platinum jewellery sales in the US to close the year with double-digit year-on-year increases.
The wedding market, including engagement rings, which experience especially strong sales during the holiday season – a very popular time for marriage proposals – is expected to lead demand for platinum jewellery for the remainder of the year and also into 2022.
In addition, as the ongoing pandemic has hampered leisure travel, many consumers have extra disposable income, some of which PGI is expecting to be reallocated towards jewellery gifting or self-purchase during the holiday season.
The US, in the interim, has seen a significant boost to jewellery sales in general owing to the pandemic; consumers have recognised more than ever the significance of jewellery in their lives, as it commemorates special moments.
In addition to pent-up demand and the re-allocation of disposable income, demand this year also reflects organic growth, which is reflected in the World Platinum Investment Council’s (WPIC’s) data forecast for the full year, wherein it anticipates platinum jewellery in North America outperforming the pre-pandemic level of 2019 by 10%
“We are seeing the US enter the eighth consecutive year of increase, supported by a platinum price still below the gold price and recognition from retailers that platinum jewellery typically provides a higher transaction value and, in many instances, a higher margin as well,” the council says.
As more consumers consider a platinum purchase to confirm and symbolise commitment within a relationship, the WPIC says they are looking for value, quality and products that differentiate – this is especially true for Millennial and Generation Z consumers.
It explains that platinum provides discerning consumers with a quality product that will last through generations.
Women’s self-purchasing is also rising, with women looking for products to celebrate a special moment or “just because”.
Additionally, with climate change becoming a topic of daily discussion, Luker says consumers are trending towards supporting products and brands that are environmentally conscious and mindful of their effect on the planet.
“Fortunately, platinum has fascinating green credentials. Platinum’s environmental roles include improving air quality and addressing climate change; the metal has been used in autocatalysts since the 1970s and is also at the forefront of zero-emissions technologies, for example in producing green hydrogen in electrolysers and in hydrogen-fuelled fuel cell electric vehicles,” she says.
Further, tennis star Emma Raducanu’s recent appointment as a Tiffany & Co ambassador has further shone the spotlight on platinum jewellery, which Luker celebrates, especially considering the company “continues to be an ardent supporter of the metal, showcasing celebrities and notable personalities in platinum, both on and off the red carpet”.