(press release) LONDON – Platinum Guild International (PGI) has published the findings of its 2017 Platinum Jewelry Business Review revealing key trends – bridal and self-purchasing – that are emerging to contribute to platinum demand growth in the U.S. Compiled by industry analysts, the survey reports strong consumer retail sales growth for 2017, outperforming gold.
“We saw above-market growth for platinum jewelry in three out of four key markets in 2017, including the U.S. This trend is tied to a robust global economy and historically low platinum prices, together with an increasing preference for platinum among younger consumers, which indicates growth potential in the platinum jewelry sector in 2018,” says CEO Huw Daniel of Platinum Guild International.
Bridal Market
In the U.S., the economic recovery and a bullish consumer sentiment has benefited the total jewelry industry, leading to the fifth consecutive year of growth for platinum jewelry consumption at 11 percent. The growth mainly comes from strong sales in bridal jewelry, including engagement rings and wedding bands. Among the markets where PGI operates, the U.S. is unique in that jewelry is primarily driven by diamond sales. The U.S. is still the No. 1 market for diamonds and presents significant benefits and opportunities for platinum, especially in the bridal jewelry category. In 2018, additional growth is expected to derive from initiatives of promoting the use of platinum crowns that hold diamonds more securely, regardless of the choice of metal for the rest of the ring.
PGI USA’s marketing efforts resulted in 10 percent growth in platinum crown sales in 2017.
Self-purchasing
Although the majority of the platinum jewelry sold in the U.S. is bridal, PGI USA has also helped introduce a new platinum collection of chain-based necklaces as part of the Platinum Born collection, to target women buying jewelry for themselves, in order to continue to optimize local market growth opportunity. As published in the De Beers Diamond Insight Report in 2017, 33 percent of non-bridal, diamond jewelry is purchased by women for themselves; a dramatic increase, growing more than one third since 2005.
“We have felt for a long time that there was room in the marketplace for a beautifully designed, well made, price-friendly platinum collection,” Jenny Luker, Platinum Guild USA’s president, explained. “After concluding extensive focus groups and market research, Platinum Born fulfilled what the female self-purchasing consumer was looking for.”
2018 Outlook
With the current market conditions and historically low platinum price, platinum jewelry in the U.S. is estimated to increase an additional 8 percent to 11 percent in 2018.