Platinum Bridal Market Helps Fuel Jewelry Demand

Industry forecasts 3 percent increase in jewelry sales for 2008 with the number of weddings rising to all time highs

NEW YORK--(BUSINESS WIRE)--Despite tough economic times, sluggish holiday season sales and soaring prices of metals and gemstones, industry leaders project an increase in jewelry sales for 2008. With inflation rates expected to jump as high as 7-8 percent, the International Diamond Exchange forecast for jewelry sales in the U.S. predicts a 3 percent increase in the upcoming yearfrom $64.0 billion (estimated) in 2007 to $65.9 billion in 2008.

“Not only are Millennials more likely to get married—rather than just live together like children of the 1960s—they are also more likely to spend heavily on bridal jewelry because they have more wealth than their predecessors.”

In a recent article by Ken Gassman State of the Jewelry Industry2008 Jewelry Demand, for Idexonline.com, Gassman highlights the bridal industrys substantial influence on the forecast. Millennials, or the children of Baby Boomers, are influencing both the jewelry and bridal industries in significant ways. In fact, in less than ten years, the number of weddings is projected to increase by approximately 30 percent among Millennials.

Not only are Millennials more likely to get marriedrather than just live together like children of the 1960sthey are also more likely to spend heavily on bridal jewelry because they have more wealth than their predecessors.

This trend is especially significant for Platinum since the type and quality of metal is one of consumers primary considerations when purchasing bridal jewelry.

A Condé Nast Bridal Group study shows that spending on bridal jewelry has increased over 60 percent in recent years. The report also found that 81 percent of consumers desire Platinum for their engagement and wedding jewelry.

A similar survey recently in Allure magazine underscored that Platinum has the highest commitment of any of the metals for both engagement rings and wedding bands.

As retailers are forced to increase the price of their jewelry to reflect the rise, Platinum is at a noteworthy advantage. Educated consumers expect and are willing to pay more for Platinum because of its distinction and superior quality.

But Platinums popularity is not merely based on fashion and reputation. There are several reasons Platinum is the metal of choice for the majority of consumers:

  • Platinum is 30 times more rare than gold;
  • Platinum jewelry sold in the U.S. is traditionally 90-95% pure Platinum compared to 18K gold, which is only 75% pure; and 14K which is only 58.5% pure;
  • Platinum is more durable and will not oxidize or fade; so prongs, patterns and engravings do not wear down like other metals;
  • Platinums density and molecular structure make it the most secure setting for a precious gems
  • Platinum jewelry has a luxurious weighty feel, weighing over a third more than the same piece in gold.
  • Platinum jewelry requires a higher level of craftsmanship than other precious metals, meaning that only the finest jewelers offer it;

The bridal industry is often called recession-proof because not even a weak economy can stop people from getting married. Many retailers are taking advantage of this notion and engaging their consumers in heavier marketing tactics such as selling wedding bands at the same time as the engagement rings.

Looking beyond the bridal jewelry industry, Gassman explains, that in order for retailers to remain unaffected by a recession, one constant is that consumers want jewelry that is, above all, ingenious.

This demand for unique and high quality designs has inspired designers such as Scott Kay, Phyllis Bergman and Ritani to not only widen their assortment, but also offer Platinum products in lighter weight, lower price-pointed pieces. This strategy has opened the Platinum door and made high quality Platinum available to broader range of price-conscious consumers.

About Platinum Guild International USA

Platinum Guild International, the marketing arm for the worldwide Platinum jewelry industry, is dedicated to promoting Platinum and its pure, rare and eternal qualities to the consumer and the jewelry trade. PGI has offices in each of the worlds major jewelry markets, providing information, assistance and education on all aspects of Platinum jewelry. For further information please visit www.preciousplatinum.com.

Contacts

Kinney + Kinsella
Laurel Saville, 212-620-0356 ext. 206
lsaville@kinneyandkinsella.com
or
Platinum Guild International
Heather Zachary Rogoff, 212-404-1605

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