Platinum jewelry demand dips in '07

Fashion

Save

E-mail

Platinum jewelry demand dips in '07

By Mary Wisniewski

November 13, 2007

Similar Stories | Topics

STORIES

Johnson Matthey site gets facelift

Platinum demand remains resilient despite price

Johnson Matthey appoints new sales, marketing exec

Report: Rising platinum price reduces jewelry production

Platinum jewelry demand continues to fall

New York—Demand for new platinum from jewelry manufacturers will dip slightly in 2007, despite modest growth in platinum jewelry purchases in China and Europe, as will demand for new palladium, according to Johnson Matthey's Platinum 2007 Interim Review, released today.

According to the review, overall global platinum demand is expected to increase by 2.9 percent to a record 6.93 million ounces in 2007, but demand for new platinum by jewelry manufacturers will decrease by 1.5 percent to 1.6 million ounces. Platinum Guild International released a statement explaining that the 1.5 percent figure doesn't account for finished platinum jewelry imported into America from overseas manufacturers, which has trended up over recent years.

The strengthening economy and growing consumer appetite for platinum jewelry in China will increase demand for new metal in the country by 20,000 ounces to 780,000 ounces in 2007; however, Japan's platinum demand for jewelry will fall by 55,000 ounces to 305,000 ounces.

Johnson Matthey also reports that recycling of retail stocks and old jewelry traded in by consumers will be substantial again, satisfying a high proportion of manufacturing requirements in Japan and China.

Platinum supply will also tighten in 2007, dropping 2 percent to 6.66 million ounces. South Africa's supply interruptions are partly to blame, along with a weak U.S. dollar and strong oil and gold prices.

Asia can be expected to support a platinum price of $1,350 per ounce, according to Johnson Matthey, which could rise over the next six months to $1,575 per ounce, depending on platinum's stronger-than-expected fundamentals and support from a buoyant gold price, as well if the U.S. dollar continues to slide.

Johnson Matthey also reports that palladium demand is set to rise in 2007, but the market will remain in surplus.

According to the review, overall global palladium demand is expected to increase by 250,000 ounces to 6.61 million ounces in 2007, but demand for new palladium by jewelry manufacturers will decrease by 250,000 ounces to 745,000 ounces as purchases by Chinese manufacturers have declined, dropping from 760,000 ounces to 500,000 ounces this year.

Furthermore, palladium manufacturing levels have fallen and demand for new metal has once again been offset by the use of recycled jewelry and the purchase of palladium refined from industrial scrap. North American and European demand for new palladium for jewelry manufacturing will slightly rise, however, reflecting the launch of test ranges of palladium jewelry in these regions.

Save

E-mail

More Fashion

Large diamonds to highlight December auction

Two big diamonds, one a 5.09-carat Asscher-cut (above), are slated to highlight Heritage's Fine Jewelry Signature Auction next month in Dallas. Read More

A kaleidoscope of diamond jewelry on tap for 2009

A-list to design gold pendants for charity

More Fashion News

More Like This

Johnson Matthey site gets facelift

July 03, 2008 | National Jeweler Network

Platinum demand remains resilient despite price

May 20, 2008 | National Jeweler Network

Johnson Matthey appoints new sales, marketing exec

July 25, 2007 | National Jeweler Network

Report: Rising platinum price reduces jewelry production

May 14, 2007 | National Jeweler Network

Platinum jewelry demand continues to fall

November 15, 2006 | National Jeweler Network

Design Portfolio

BROWSE

Video

Retailer Toolbar

LoupeIt!
A search engine designed specifically for the jewelry industry where every return is relevant to the retail jeweler.

Newsletters
Topic-specific newsletters that deliver the latest news on jewelry, diamonds, wholesale operations and high-volume buying directly to your in-box.

ReaderConnect
Supplier information presented with every article, bringing you related, actionable content on every topic.

Yellow Pages
A comprehensive listing of associations, organizations, suppliers and services for the jewelry industry.

Classifieds
A comprehensive listing of job postings, product offerings and other materials for sale for the jewelry industry.

CustomerConnect
The most sophisticated suite of marketing services available for jewelry retailers, from Internet tools to data marketing.