A Time for Platinum?

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VeryChic

VeryChic

O.G.
Jan 27, 2009
24
0
#1
It has long been the understanding the anything in Platinum is going to have a higher price tag than similar items in white gold or other alternative metals. Its only fitting as in my mind platinum is the king of precious metals (for its numerous positive qualities).

However, with the economy in a slump the price of platinum has come down significantly. As of today an ounce of platinum is only about $100 dollars more than an ounce of gold ($1050 vs $950).

While I know that the economic slump also means that people have less money to spend on things like jewelry, there is that portion of the population which will continue to buy jewelry regardless.

What does this mean for you? Platinum jewelry should start becoming more affordable than ever (hopefully). Of course stores will still have inventory from when the price of platinum was high so we wont see a dramatic drop in the price of platinum jewelry but I strongly suspect that we will begin to see much more affordable deals in new platinum jewelry. Im no jewelry industry analyst or anything but it would only seem to make sense.

How do you guys feel about this? Do you think that as we start to see the price of platinum jewelry and gold jewelry become closer that more people will tend to buy platinum or stick with more traditional gold and other alternatives? Im curious to know if most of you prefer other white metals to platinum because of their look or qualities, or if it has been the historically higher price tag of Platinum that has kept it from being much more widely bought.

I for one think that if prices come down Ill be taking a much harder look at getting some nice platinum jewelry before the prices go back up again.

-VC
 
#2
the price of a piece of jewelry has very little to do with the price of gold or platinum. at least not for the consumer for the jewellery yes.

but i would not bet on those pirce fluctuations beeing passed onto the customer.
jewellery (and any other luxury good) is placed in the marked not calculated on actual cost
 
#3
My preference of gold or platinum is totally dependent on the piece of jewelry involved.

Strictly on the basis of appearance, I prefer WG over platinum. For me, WG has a warmer, richer look, vs. platinum, which has a cooler, more "steely" look. Thus for something like a straightforward band, I would go with the WG.

For my WR however, I went w/platinum for the durability factor because of the stones involved...
 
#4
I think once the auto industry rebounds a production increases, then the value of platinum will increase since there will be more of a demand. I am allergic to WG so I have to use stainless and platinum. I prefer platinum anyway, I like the steely look of it !
 
#5
Mrs. MC said:
I think once the auto industry rebounds a production increases, then the value of platinum will increase since there will be more of a demand.
Click to expand...

Completely agree with you Mrs. MC, but it may take some time (years) for that to happen. GM posted a 30.9 billion dollar loss last year, cut 50,000 jobs and closed 11 factories despite the 13 Billion it received in gov't loans. The US auto industry is hurting badly and GM isnt the only one who will most likely not survive without significant government help.


lilach said:
the price of a piece of jewelry has very little to do with the price of gold or platinum. at least not for the consumer for the jewellery yes.

but i would not bet on those pirce fluctuations beeing passed onto the customer.
jewellery (and any other luxury good) is placed in the marked not calculated on actual cost
Click to expand...

I dont know if i can agree with you on this one lilach. This isnt just a price fluctuation, the price of platinum today is literally 50% of what it was last year.

It is true that especially in the luxury market, consumer prices are not subject to the fluctuations that basic commodity items are. However, we are in an economic slump and people are cutting back on spending. Over the holidays Debeers announced a new emergency ad campaign aimed at promoting "fewer, better things" precisely because people are cutting back on spending and starting to question their luxury purchases more than ever.

I still believe that with the price of platinum very low that we will start to see an influx of more affordable platinum jewelry enter the market. Retaiers need to drive sales and the way to do that is NOT to maintain prices at a high level at a time when people have less money to spend, and their costs are at a historic low.

-VC
 
#6
Yea I think if you can find someone with higher turnover of stock you can often get the lower rates of platinum. I am really arguing with myself over whether to get the ruby and diamond ring I want made now or wait.
 
#7
ame said:
I am really arguing with myself over whether to get the ruby and diamond ring I want made now or wait.
Click to expand...

If your getting it custom made in platinum now is probably not a bad time to take a look. Depending on your relationship with your jeweler you might want to mention "in passing" how the price of platinum is so low right now and you thought it would be a great time to finally do it.

Going off of your line of thought Ame; this may actually be a better time to look at getting custom pieces done in platinum since any existing pieces may have had their price determined when platinum was still high.

I feel like there is alot of potential here for getting some great deals though im not the most familiar with jewelry retail. Does anyone have any ideas how someone might be able to take advantage of the low price of platinum from a practical standpoint?

-VC
 
#8
i think this is going to have a bigger effect on the non-branded/non-designer jewelry. i dont think Cartier, Tiffany's, Bulgari, etc will have decreases in prices.
 
#10
VeryChic said:
If your getting it custom made in platinum now is probably not a bad time to take a look. Depending on your relationship with your jeweler you might want to mention "in passing" how the price of platinum is so low right now and you thought it would be a great time to finally do it.

Going off of your line of thought Ame; this may actually be a better time to look at getting custom pieces done in platinum since any existing pieces may have had their price determined when platinum was still high.


-VC
Click to expand...
Very much agree. I really should just price it out already.
 
#11
I've already seen a decrease in non-branded jewelry and even designers such as Ritani, Michael B, and Simon G. My wedding band was custom and I paid less for it than I was quoted last year. I would be curious to see if big names such as T and Co decrease prices...
 
#13
I wanted to add this interesting fact from a recent experience. I was in a local jeweler and decided to bring up how the price of platinum is so low right now. He said that since the price of platinum dropped, he had lowered his prices on new platinum and even platinum jewelry that he had bought when platinum was double what it is now. According to the owner, platinum sales had increased 85-90% since the price reduction. He said in the short run he will lose money on the more expensive pieces that were already in his inventory but the ability to price platinum more reasonably caused a huge jump in the amount of platinum sold.

Sounds like some places are being smart about this and passing the savings on in order to sell more pieces. Ill try to go to another local jewelry store this afternoon and maybe even take some pictures.

-VC
 
#14
You should keep in mind though that almost any gold will still be substantially cheaper than platinum even though they're trading at nearly even prices on the market. 14k gold is only about 53% gold, 18k is 75% while platinum is at minimum 90% platinum or 95%.
 
#15
VeryChic said:
If your getting it custom made in platinum now is probably not a bad time to take a look. Depending on your relationship with your jeweler you might want to mention "in passing" how the price of platinum is so low right now and you thought it would be a great time to finally do it.

Going off of your line of thought Ame; this may actually be a better time to look at getting custom pieces done in platinum since any existing pieces may have had their price determined when platinum was still high.

I feel like there is alot of potential here for getting some great deals though im not the most familiar with jewelry retail. Does anyone have any ideas how someone might be able to take advantage of the low price of platinum from a practical standpoint?

-VC
Click to expand...

Yes - If you have a solitaire ring set in gold, this might be a good time to have your mounting changed to platinum. You'll never have to worry about the prongs wearing as gold does.
 
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