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The Platinum Jewellery Revolution: Platinum vs Gold Jewellery Market Trends in the UK

The Platinum Jewellery Revolution: Platinum vs Gold Jewellery Market Trends in the UK

Andrew Wilson Andrew Wilson
12 minute read

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In this article, we will discuss platinum vs gold jewellery market trends. A significant shift is transforming the global jewellery market as platinum reaches price parity with white gold. 

Recent data shows platinum jewellery demand growing substantially outside China, particularly in North America and the UK, where purchases have increased 600% since 1990. Digital retail platforms and changing consumer preferences drive this trend, supported by platinum's durability and lower maintenance requirements. The rising popularity of platinum suggests a reshaping of traditional jewellery market dynamics.

Platinum is poised to take centre stage as luxury spending surges and gold prices surge. There's more beneath its silvery surface.

Main Highlights

  1. UK platinum jewellery purchases have risen by 600% since 1990, indicating a significant shift from traditional gold preferences.
  2. Price parity between platinum and white gold is leading consumers to switch, potentially increasing platinum consumption by 1.3% annually.
  3. Higher profit margins and competitive pricing are making platinum increasingly attractive for retailers compared to gold pieces.
  4. Platinum's durability, natural white colour, and low maintenance requirements are winning over consumers traditionally loyal to gold.
  5. While gold remains dominant, platinum's global market growth is being strengthened through North American demand and strategic expansion in India.

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Eva Lab Diamond Halo Cushion Engagement Ring 0.85ct G/VS in Platinum

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The Current State of Platinum vs Gold in Global Markets

Whilst gold has long dominated the precious metals jewellery market, platinum's position has evolved significantly over the past decade, marked by distinct regional shifts and changing consumer preferences.

The global platinum jewellery market has demonstrated remarkable resilience, despite declining from 3.0 Moz in 2014 to 1.9 Moz in 2023, primarily because of decreased Chinese demand. North America has emerged as a bright spot in the market, with retail chain demand showing particularly strong post-pandemic momentum.

Demand from outside of China grew from 1.0 Moz to 1.6 Moz, driven by competitive pricing against gold and luxury brand adoption. With a 2.0% CAGR (Compounded Annual Growth Rate) expected between 2023 and 2028, this growth trajectory shows no signs of slowing.

This geographic diversification has transformed the market scene, with non-Chinese demand now representing approximately 80% of global platinum jewellery consumption, highlighting evolving consumer preferences and establishing platinum as a formidable competitor to traditional gold jewellery.

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Platinum Versus Gold Dynamics

While both platinum and gold captivate the world of jewellery, their distinct properties and market dynamics set them apart.

Platinum's advantages lie in its purity and strength, cradling gemstones with a gentle yet secure hold. Its durability and heft speak to those who cherish lasting connections. Known for its hypoallergenic properties, platinum is a perfect choice for individuals with sensitive skin, ensuring comfort without compromising style. Given that platinum is much scarcer than gold, its exclusivity often elevates its allure and value in the eyes of many jewellery enthusiasts.

Gold, with its versatility, dances across a spectrum of colours—yellow, rose, and white—inviting you to express your individuality and adapt to life's ever-changing tapestry.

In choosing between these two, consider:

  • Durability: Platinum's strength offers peace of mind for those who prioritise longevity.
  • Aesthetic Appeal: Gold's vibrant hues and styles invite you to examine endless possibilities.
  • Investment Strategy: Gold's stability offers comfort, while platinum's volatility might tempt the adventurous.
  • Maintenance Needs: Opt for platinum if you're committed to regular care; gold suits a more laid-back approach.

As you think about your choice, reflect on what resonates with your spirit.

Do you seek the quiet elegance of platinum, or does the bold versatility of gold call your name?

Both metals whisper stories of beauty and resilience, inviting you to find your place in their timeless narrative.

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Regional Success Stories: US, India, and Japan Lead the Way

The platinum jewellery market shows remarkable momentum across three key regions, with the US and UK experiencing a striking 600% surge in consumer demand since 1990.

India's success stems from creative marketing campaigns like Men of Platinum, which has expanded into the Middle East and contributed to double-digit growth.

Japan's thirteen consecutive quarters of sales increases, particularly in high-purity products, demonstrate the metal's enduring appeal across different consumer segments. This sustained growth is especially notable given platinum's lower market price compared to gold, making it an increasingly attractive option for consumers seeking premium jewellery. In the US market, retailers are showing heightened interest as soaring gold prices drive consumers to explore platinum alternatives.

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The US Market's Record Growth

As global platinum jewellery markets continue to evolve, North America has emerged as a standout performer, with the United States demonstrating remarkable growth potential through 2033.

Market projections indicate an impressive expansion from USD 3018.46 million to USD 5332.34 million, reflecting changing consumer trends and growing platinum preferences among American buyers.

Similar to the lab-grown diamond market, the United States dominates the platinum sector with a commanding market presence. The surge in US demand is driven by several key factors, including rising disposable incomes, urban lifestyle shifts, and increasing awareness of platinum's durability. Post-election periods are expected to see increased consumer confidence, further boosting the market momentum. The market has seen significant growth in speciality store sales, as consumers prefer the enhanced shopping experience and trust associated with in-person purchases.

Particularly noteworthy is the growing popularity of platinum among American brides, who are increasingly choosing this precious metal for its opulent, white shine and long-term wear characteristics.

This trend, combined with the country's strong luxury jewellery market, positions the United States as a pivotal force in the global platinum jewellery arena.

India's Luxury Chain Expansion

Beyond North America's success, India's jewellery market has emerged as a global force in the platinum scene, exhibiting remarkable expansion across its luxury retail chains.

The sector is projected to surge from US$80 billion to US$225-245 billion by FY35, driven by evolving luxury trends and consumer preferences.

Major retailers are capitalising on this growth through strategic franchise models, enabling swift market penetration as well as maintaining lower capital requirements.

The market has reached retail sales of $60.3 billion in 2022, showing strong recovery to near pre-pandemic levels.

This expansion is supported by strong domestic demand, digital transformation, and increasing consumer interest in platinum jewellery, which saw an impressive eight percent growth in 2023.

The organised retail sector has demonstrated significant progress, with its market share growing from 2% in 2000 to 40–50% currently.

Retailers are increasingly incorporating lab-grown diamonds into their collections to meet growing consumer demand for sustainable and cost-effective luxury options.

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Lily Lab Pear Diamond Solitaire Engagement Ring 3.00ct D/VVS Platinum

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Fall in love with the extraordinary beauty of the Lily Lab Pear Diamond Solitaire Engagement Ring, featuring a 3.00ct D/VVS-graded lab-created diamond set in platinum. Handcrafted in the UK with a lifetime workmanship guarantee and an IGI-certified pear shape diamond,… read more

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Japan's Tourism-Driven Recovery

Following a remarkable post-pandemic rebound, Japan's tourism sector has demonstrated extraordinary resilience, with foreign visitor spending reaching an unparalleled JPY 5.8 trillion (£27 billion) in the first nine months of 2024.

Nearly 27 million international visitors have flocked to Japan, driven by improved air connectivity, competitive airfares, and strong interest from key markets like China and South Korea. Increased flight routes and lower airfares have contributed significantly to this tourism surge.

These tourism trends reflect Japan's successful market recovery strategy, supported by substantial investments in the sector. The Japanese government has allocated 30 trillion yen to revitalise the tourism industry and combat rising inflation.

The country's jewellery market, particularly platinum, has benefited significantly from this tourism surge, experiencing notable growth through increased visitor purchases and exports.

With the upcoming World Athletics Championships in Tokyo and ambitious government targets of 60 million annual visitors by 2030, Japan's tourism-driven economic revival continues to gain momentum.

Supply and Demand Challenges

As you investigate the vibrant demand for platinum jewellery across the globe, another reality emerges—the intricate balance of supply and demand. This precious metal's allure is undeniable, yet the road to fulfilling its demand is laden with supply constraints.

The total platinum supply is expected to have decreased by 1% in 2024, with mined supply falling by 2%. South Africa and Russia face significant challenges, including cost-driven restructuring and maintenance, respectively. In contrast, the modest 2% increase in recycled supply offers a glimmer of hope amidst these supply challenges. Despite the challenges, the platinum market deficit is projected to exceed 1 million ounces in 2024, highlighting the persistent gap between demand and supply. With a forecasted rise in investment demand by 15% to 517 koz in 2024, the allure of platinum remains strong, even amid supply constraints.

Demand fluctuations paint a compelling picture as platinum's appeal grows. Jewellery demand is set to rise by 7%, driven by its unique elegance. A 3% overall demand increase underscores a burgeoning interest across different sectors, from investments to automotive applications.

Despite these challenges, the community of platinum enthusiasts continues to grow, united in their appreciation for this rare metal. However, the market anticipates a significant deficit for the second consecutive year, underscoring the urgent necessity to navigate through these challenging times.

  • Total supply decrease: 1% decline to 7,089 koz
  • South African supply decline: 2% drop
  • Jewellery demand increase: 7% rise
  • Market deficit: 1,028 koz projected

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Layla Lab Diamond Halo Princess Engagement Ring 2.75ct G/VS in Platinum

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The Price Parity Effect: Why Platinum Is Gaining Ground

As platinum has historically commanded higher prices than gold, a notable shift in market dynamics over the past decade has created an intriguing price parity effect.

Despite platinum's current lower market price, consumer psychology continues to associate it with premium value, leading to sustained demand and higher retail margins for jewellers. Recent research shows that consumer belief remains strong despite platinum trading at lower prices than gold. The metal's exceptional durability makes it a smart long-term investment for jewellery buyers.

This unique price perception has triggered a significant market transformation.

With platinum now trading at similar or lower prices than white gold, price-driven switching is becoming increasingly common.

Jewellers are capitalising on this trend, as platinum pieces typically generate better profits than their gold counterparts.

This combination of consumer prestige perception and attractive pricing has positioned platinum jewellery for substantial growth, particularly in markets like India and the US where luxury goods consumption is rising.

Future Outlook: Growth Projections and Market Opportunities

Platinum vs Gold Jewellery Market Trends shown by a window of platinum and gold jewellery with a computer display in the background

Market projections paint an optimistic picture for the platinum jewellery industry, with forecasts indicating growth from USD 3018.46 million in 2023 to USD 5332.34 million by 2033, representing a steady CAGR of 5.86%.

This growth is driven by evolving consumer preferences, with more buyers choosing platinum over traditional white gold, particularly in wedding bands and ritual purchases. The expanding e-commerce platforms have significantly boosted market accessibility and sales potential.

Industry experts anticipate significant opportunities as platinum maintains a price advantage over gold, making it an attractive substitute for value-conscious consumers.

The market's future looks promising with increased focus on sustainability practices and product innovations. Innovative developments like the Inoveo platinum alloy are expected to revolutionise the industry's offerings.

Although China's demand may experience some decline, growth in other regions, particularly North America and India, is expected to offset this trend.

The industry's transformation suggests a bright future for platinum in the global jewellery market.

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As platinum continues its meteoric rise in jewellery markets worldwide, we can all be impressed by its growing dominance. The combination of competitive pricing, digital retail innovation, and shifting consumer preferences suggests platinum will maintain strong momentum through 2025. 

With established success in key markets and untapped potential in emerging regions, platinum's position as a premier jewellery metal appears increasingly secure in the global marketplace.

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11 Stone Lab Diamond Half Eternity Ring 1.00ct D/VVS in Platinum

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FAQs

How Does Platinum Jewellery Compare to White Gold in Terms of Durability?

Platinum jewellery demonstrates superior durability through its greater hardness and metal weight compared to white gold, resisting wear better during the development of a distinctive patina rather than losing material over time.

What Are the Environmental Impacts of Platinum Mining Versus Gold Mining?

Platinum extraction typically causes more environmental damage than gold mining, requiring deeper mining and higher energy use. Nevertheless, both processes contribute to water pollution and ecosystem disruption through toxic chemical releases.

Can Platinum Jewellery be Resized Like Traditional Gold Rings?

With 95% of jewellers now equipped for platinum resizing, these rings can be adjusted similarly to gold ones, though specialised resizing techniques and higher heating points are required for successful results.

How Do Platinum's Hypoallergenic Properties Affect Its Appeal in Medical Jewellery?

Platinum's exceptional hypoallergenic properties make it ideal for medical applications, offering peace of mind to those with skin sensitivity while ensuring lasting comfort through its non-reactive, pure composition.

What Maintenance and Cleaning Requirements Does Platinum Jewellery Need Compared to Gold?

Platinum care requires less frequent maintenance than gold upkeep, needing only regular gentle cleaning with mild soap. As platinum develops a patina, gold requires periodic replating and more intensive polishing.

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