Platinum has come a long way from being a metal only the wealthy could afford, to becoming affordable even for middle-class customers. Both industry experts and jewelery retailers are now changing their minds about the exclusivity of platinum jewellery; especially since the trend has spread from metropolises to other parts of the country. Platinum Guild International (PGI, an industry body supported by South African platinum producers and refiners), predicts that platinum jewelery is set to grow by over 35% this calendar year. The industry has grown from 2 manufacturers and 15 retailers in 2000 to 17 manufacturers and over 800 retailers as of today.
If you're planning to embellish your jewelry box with platinum, here are a few things you need to know.
Diamond as an Investment
If you are planning to buy platinum jewelry as an investment, think again. Platinum consumption, although on the rise, is still not as popular as gold and diamonds in the country. Currently, gold consumption is around 850 tonnes, while platinum consumption is only around 40 tonnes. So, if you are planning to buy platinum from an investment perspective, the market does not seem mature enough for that yet. If people want to buy gold as an investment, they can choose from jewellery, bars, biscuits or coins. But with platinum, people are forced to buy only jewelry as none of the other options are readily available.
Check the Certificate!
The price you pay for any precious metal is directly related to its purity. The purity and type of metal are defined by a hallmark. Platinum properties are displayed differently in different countries. For example, platinum jewelry in India is stamped with a Pt950 mark, indicating 95% purity. Be sure to look out for tamper-proof quality assurance cards. Besides this, each piece of jewelery has a Unique Identification Number stamped on it to identify the manufacturer of the piece.
Platinum as a Jewelry Metal
One of the most common misconceptions about platinum is the general understanding of its value. Many of our customers have requested quotes for custom platinum creations and are shocked at the cost. Platinum is generally the most expensive jewelry metal on the market. In some cases, it is priced higher than gold by gram weight, depending on economics. If you are looking for a special platinum creation, you should expect it to cost more. A typical platinum custom build quote starts at $1000.
Besides being a precious metal, platinum's cost in terms of customization is also justified due to the expertise required to handle the metal. It requires higher heat than gold and silver, and special equipment is often required to produce platinum castings. As a result, this increases the final price of the custom creation due to labor costs.
Price Element
Pricing refers to the amount you have to pay for the labor involved in making a piece of jewelry. Generally, labor fees are a percentage of the current platinum price. These fees are normally higher than gold. Therefore, the higher the price of platinum jewelry you purchase, the higher the making fees will be. Gold prices change every day according to the market rate. These rates are displayed by most jewelers that day. However, there is no standard pricing when it comes to platinum. It used to be sold at a fixed price until 2002-03, but now every jeweler's daily price varies between 4-5%. This makes calculating the price quite difficult.
The best way to get value for money is to check labor charges and pricing of the metal separately. Some retailers have been known to reduce platinum prices and increase labor charges. Therefore, it makes sense to compare prices before buying platinum to make sure you're getting the best deal.