COMMENTARY — Platinum jewelry sales on rise

During the past two decades, global demand for platinum has surged.

Applications using platinum are widespread in automobiles, fuel cells, electronic components, catalysts, medicine and jewelry.

Johnson Matthey reports that demand for platinum jewelry worldwide has soared 82% in the past 10 years. The demand for platinum jewelry jumped to 2.3 million oz. in 1998 from 1.3 million oz. in 1989.

The use of platinum in jewelry has increased more dramatically than any other use, despite periodic recessions and economic turmoil. In the U.S.

alone, consumer demand for platinum jewelry has increased by an estimated 600% since 1990. Such jewelry is sold at 15,000 retail outlets in the U.S., compared with just a handful 10 years ago.

Annual growth rates for jewelry demand in the U.S. and Asia have been in the double digits. Japan, traditionally the world’s largest supplier of platinum jewelry, is showing signs of economic recovery that could boost demand figures further.

The preceding is an excerpt from Market Update Platinum, the publication of Newport, Calif.-based Platinum Guild International.