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Platinum Jewelry Demand Continues To Grow December 03, 2021 (0 comments)
New York, NY—As consumers are spending more and more on fine jewelry, demand for platinum is growing along with it. Jenny Luker, president of the Platinum Guild International USA, recently spoke with the World Platinum Investment Council about increasing consumer demand for platinum, the changing U.S. jewelry market, and PGI's expectations for 2022. Here are excerpts from her interview:
WPIC: How has demand for platinum jewelry in the USA performed so far in 2021?
Jenny Luker: We are thrilled to report that we are experiencing unprecedented demand for platinum jewelry this year, as PGI USA’s strategic business partners saw platinum jewelry sales increase by significant percentages through Q3 2021, compared to the same time periods in 2020 [and] 2019. This is in part due to the significant increase in weddings we have seen, many of which were postponed from last year due to the pandemic.
WPIC: What is the outlook for the remainder of the year and into 2022?
Luker: As we head into the holiday season and next year, all indicators are predicting that platinum jewelry will deliver a continued strong performance. PGI expects platinum jewelry sales in the USA to close the year with double-digit year-on-year increases.
Again, the wedding market, including engagement rings, is expected to lead demand for platinum jewelry for the remainder of the year and into 2022. In addition, as the ongoing pandemic has hampered leisure travel, many consumers have extra disposable income, some of which we are expecting to be reallocated towards jewelry gifting or self-purchase during the holiday season.
WPIC: To what extent has the growth seen in 2021 been driven by post-pandemic recovery versus organic growth?
Luker: In the USA, we have seen a significant boost to jewelry sales in general due to the pandemic; consumers have recognized more than ever the significance of jewelry in their lives, as it commemorates special moments.
In addition to the reallocation of disposable income, the phenomenal demand we have seen this year also reflects organic growth. We are seeing the USA enter the eighth consecutive year of increase, supported by a platinum price still below the gold price and recognition from retailers that platinum jewelry typically provides a higher transaction value and, in many instances, a higher margin as well.
WPIC: To what extent has PGI USA had to adapt its marketing and trade programs to embrace digital channels?
Luker: The majority of our marketing initiatives were digitally focused pre-pandemic, as that is where we can more efficiently and effectively reach our target audience. We have confirmed this consistently through research conducted in the past several years. While most consumers will still ultimately purchase from a traditional brick-and-mortar retailer, the vast majority will do all of their pre-purchase research online.
Bridal jewelry still accounts for the majority of platinum sales.
For more information and resources for platinum sales and marketing, visit PGI. For more platinum news and stories, visit the World Platinum Investment Council.