Market Developments

Platinum prices turn holiday into white Christmas

Platinum jewelry, like this diamond engagement ring by American Jewelry Designs, was an easier sell this holiday because platinum’s per-ounce prices were lower than those of gold.
Feb 1, 2012

There might not have been snow, but it was a white Christmas for jewelers just the same, with brides- and grooms-to-be taking advantage of per-ounce platinum prices that have been lower than those of gold since August.

Long’s Jewelers saw a 20 percent increase in sales of the precious white metal over the holidays, said Craig Rottenberg, the president of the Boston-based company.  He attributes much of that increase to a radio ad, aimed at potential customers to its stores in New England, which draws their attention to platinum prices.

The holiday season ad stated that “for the first time in recent history, an ounce of platinum actually costs less than an ounce of gold…that means platinum and gold [engagement ring] styles are priced closer than ever and there’s never been a better time to make the best choice at the best value.” (To hear the whole ad, visit www.pgi-press.com.)

It’s no surprise that the value message hit home. In a recent survey of Platinum Guild International’s Preferred Retail Partners, the price tag was second only to product features when it came to positive factors  affecting sales of platinum jewelry.

The interest in platinum also seemed to be on the rise at Lux Bond & Green, based in West Hartford, Conn.

“We’ve always been a platinum proponent, we’ve always had that focus and sold a lot of platinum,” said John Green, president and CEO of the company.

Brides-to-be visiting Lux Bond & Green tend to be involved in the engagement ring buying process and they overwhelmingly prefer diamond engagement rings set in platinum from the outset, Green says.

This year, however, rather than explaining to customers why platinum jewelry cost more, sales staffers were able to explain that it actually cost less than gold.

“It certainly was easier for us to sell bands,” Green said. “Instead of saying that they were more expensive, we were able to say that platinum was $150 less per ounce than white gold.”

Shant Dakessian, president of Simone & Son Jewelers said that platinum has never been a hard sell at his store in Huntington, California with many preferring it for its “longevity, color and feel.”

But the rising price of gold made selling platinum engagement rings a little easier this holiday season “because of the prices being so comparable in the designs that are popular right now," Dakessian said.

 

 

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