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Industry News: Platinum Demand Will Exceed Supply; PGI’s Fall Promotions; GIA’s New Governors November 13, 2013 (0 comments)
PGI Focuses on Millennial Consumers With New Online Activities
New York, NY—Platinum Guild International has kicked off the fourth quarter with a variety of promotional activities targeting Millennial consumers. Working in collaboration with retailers, manufacturers, and designers, PGI is putting its message where Millennials spend the most time: online.
A new online platinum ad campaign called “The Platinum Difference” will appear on The Knot, Martha Stewart Weddings, Refinery29 and Colin Cowie Weddings. The campaign explains the difference of platinum by drawing a connection to life’s unfading moments; for example, the experience of an adventure as opposed to a mere photograph.
The banner campaign will feature an expandable unit within the website the user is on. This will allow and encourage consumers to take delve deeper into the qualities of platinum, as well as explore a gallery featuring multiple platinum pieces, and view video. The new campaign will hit sites in November.
As part of its partnership with PGI USA, the Colin Cowie Weddings website has recently launched its gallery of Colin Cowie’s “Platinum Jewelry Must Haves.” Visit the gallery here and stay on the lookout for more platinum posts.
The platinum jewelry gallery on Colin Cowie Weddings.
In addition to continued programs with key bridal websites, PGI-USA also kicked off a partnership with the largest independent fashion and lifestyle website in the United States, Refinery29. This is new territory for PGI-USA, whose online programs typically live in the bridal space, but as a go-to resource for all things fashion, jewelry, and lifestyle, Refinery29 is a relevant outlet to showcase platinum jewelry in both the fashion and bridal realms. As part of this program, Refinery29 is curating platinum jewelry look books based on the jewelry trends they have identified. The latest trend is platinum engagement bands, a theme for those looking for something a little different than the traditional engagement ring. Check it out here.
“This year, we have continued to increase the exposure of platinum in the online space,” says PGI USA president Huw Daniel. “The Millennial consumer is tech-savvy and is gathering more information online before going to a store to make a purchase. We are gearing our programs to find the consumer in their own space and are thrilled to work with a diverse group of partners who allow us to do so in interesting, creative and informative ways. We look forward to continuing this momentum in 2014.”
Johnson Matthey: 2014 Platinum Jewelry Demand Should Be Robust; Overall Market Still In Deficit
Wayne, PA—An overall deficit in the platinum market is forecast to increase to 605,000 ounces in 2013, from a deficit of 340,000 oz in 2012, according to Johnson Matthey’s ‘Platinum 2013 Interim Review’, released Tuesday.
Supplies of platinum will rise by 1.6% to 5.74 million ounces, with higher output from Zimbabwe accounting for most of the gains, but strong offtake by industrial users and investors will lift gross platinum demand by 4.9% to 8.42 million ounces. Platinum recycling will grow slightly to 2.08 million ounces, but demand overall will outstrip supply this year.
Gross demand for platinum in jewelry will slip by 1.4% to 2.74 million ounces this year, as purchases by Chinese jewelry makers dipped after a very strong 2012, but higher demand is expected in Europe, North America and India.
Industrial demand will rise by 11.5% to 1.79 million ounces. The construction of new production facilities in Asia and the Middle East is expected to boost purchases of platinum catalysts by the chemical sector. A recovery of demand for platinum in the manufacture of glass and computer hard disks will be partly offset by lower purchases by the petroleum industry. Autocatalyst demand also will fall by 2.0% to 3.13 million ounces, reflecting weakness in the world’s two largest markets for diesel cars, Europe and India.
Unprecedented offtake by ETF investors in the new Absa fund in South Africa is expected to lift investment demand by 68% to a record 765,000 oz. But platinum supplies from South Africa are forecast to rise by less than 1%, owing to production losses from strikes and safety stoppages.
Recycling of platinum from spent autocatalysts is expected to rise by 12.8% to 1.28 million ounces, but reprocessing of old platinum jewelry will drop by 12.9% to 775,000 oz, reflecting lower recycling rates in China and Japan.
For 2014, primary platinum supplies are unlikely to grow significantly. Industrial offtake will remain strong, purchasing by automakers should be boosted by new diesel emissions limits in Europe, and the outlook for jewelry demand is robust. But even with a further rise in recycled platinum, and a drop in investment offtake compared to 2013’s exceptional total, a third consecutive year of deficit is likely.
Palladium. Although the gap between palladium supply and demand will narrow in 2013, the market will be in deficit again next year. Primary supplies will decline to 6.43 million ounces, due mainly to lower Russian stock sales, but recycling will grow by 7.4% to 2.46 million ounces. Palladium demand will fall by 3.4% to 9.63 million ounces, with auto-catalyst demand strongly up, but purchases in other sectors down.
Palladium jewelry continues to lose market share in China, and has not established a substantial foothold in any other market. Outside China, use of palladium as an alloying element in white gold and platinum and for men’s wedding bands will be stable. But overall demand for palladium in jewelry manufacturing is expected to fall by 12.4% in 2013 to a ten year low of 390,000 oz.
For 2014, primary supply will fall in the absence of Russian stock sales, but this will be offset by additional recycling. Higher auto demand will be balanced by lower jewelry purchases and further substitution in industrial applications. This leaves investment as the wild card in the overall supply-demand picture: a proposed rand-denominated palladium ETF could generate additional demand from South African investors and push the market further into deficit.
Tom Moses and Elliot Tannenbaum Named To GIA Board of Governors
Carlsbad, CA—The GIA (Gemological Institute of America) Board of Governors inducted Thomas M. Moses, who was also named executive vice president and chief laboratory and research officer for GIA, and Elliot Tannenbaum, senior principal of Leo Schachter Diamond Group (LS Group), during the board’s November 2013 meeting in Carlsbad. Moses and Tannenbaum join the 16 other governors in directing the strategy of the Institute and serving as stewards of the public interest.
Tom Moses, left, and Elliott Tannenbaum, right.
“Elliot Tannenbaum’s exemplary record of leadership as a global diamond executive complements our diverse board. His passion for the gem and jewelry industry, his charitable contributions, and his global business sensibilities will be instrumental in helping fulfill GIA’s mission of serving the public trust,” said board chair John Green, president and CEO of Connecticut-based Lux Bond & Green jewelers. “The addition of Tom Moses, considered one of the leading gemologists of our generation, reinforces the importance of gemological research and GIA’s laboratory services to our public benefit mission.”
“On behalf of more than 2,000 GIA staff worldwide, I am pleased to welcome Tom and Elliot to the Board of Governors,” said Susan M. Jacques, GIA’s recently announced president and CEO. “I couldn’t be happier with the addition of their experience and wisdom to this wonderfully talented group of governors.”
The appointment of Jacques, the previous chair of the board of governors, as GIA’s president and CEO effective Jan. 1, 2014, was announced in October, along with the appointment of long-time governor John Green as chair of the board.