Precious Materials Insight: Price advantage boosts platinum over white gold in engagement ring market

04 Sep 2020

Image: Alexander Davis

By David Brough

With platinum less than half the price of gold, the premium white jewellery metal is powering ahead of white gold in the engagement ring market.

Platinum is widely seen as the superior jewellery metal to white gold because of its hardness and lustre, and now benefits from a huge price discount to booming gold.

Prices of gold have soared to record peaks during the coronavirus pandemic due to its attraction to investors as a safe haven.

Historically low interest rates and bullion’s appeal as a hedge against inflation drove prices of the yellow metal to an all-time high of $2,072.50 per ounce on August 7.

Gold was hovering close to $2,000 an ounce at the time of writing this article, while platinum was below $1,000 an ounce.

Platinum is used mainly in industry, notably in the automotive sector, which has been battered by the pandemic.

In jewellery, the engagement and bridal market remains resilient despite the pandemic and social distancing requirements at weddings.

Jewellers see platinum’s quality advantage and price discount to its rival white gold in the engagement ring market as a great opportunity to push platinum engagement jewellery sales.

Harriet Kelsall, Founder and Chair of Harriet Kelsall Jewellery Design Ltd, said,

“Platinum is very favourable and chosen by a lot of our customers at the moment, especially over 18ct white gold which I guess is no surprise because of the price,” said 

“For low budget options, people often do still sometimes go for 9ct white gold, although if we go into the durability differences and things like re-tipping/longevity I think people are often still swayed to platinum. More recently with platinum not being that far off the price of 9ct white gold, we have definitely seen many people choose platinum over 9ct and 18ct white gold.

“The only people still choosing 18ct white gold are those who really like the colour of it and so want the warm gun-metal white (with no rhodium of course).

“We have also had people who have palladium engagement rings (designed and made by us for them when the price of palladium was much lower) now coming back for wedding rings and choosing platinum as the price is so much lower.”

An award-winning jewellery designer Alexander Davis, who has a boutique on Duke Street in central London, says platinum is a more attractive prospect than white gold because of its high quality as a jewellery metal while offering relative value for money.

“I don’t use 18-carat white gold a lot for engagement rings because the rhodium plating used to make it bright quickly wears off,” said Davis, who won 2017-18 Jewellery Designer of the Year at the UK Jewellery Awards.

“I know that 18-carat white gold was commonly used because it used to be cheaper than platinum. However, I think that platinum jewellery is now overtaking white gold. Almost all diamond engagement rings I’m making at the moment are either platinum or yellow or rose gold.”

Davis added,

“In terms of strength and durability, and holding a bright white shine, platinum is superior to white gold. It’s clearly the metal to choose.”

Platinum is a harder metal to work than gold and production costs are higher, but such is the discount to the gold price that platinum retains a price advantage in the engagement ring market.

Dinesh Parekh of Birmingham-based supplier Just Diamonds says he is offering platinum finished jewellery 5 percent cheaper than white gold pieces, and sees platinum as the preferred product in the engagement ring market.

“It’s a no-brainer: the physical qualities of platinum far outweigh those of gold, especially in the jewellery industry,” he said.

Regarding platinum’s price discount to gold, Parekh added,

“I am passing these savings onto my customers.”

Platinum Guild International, which promotes platinum in the jewellery industry, said in its Platinum Jewellery Business Review 2020 that platinum has attracted great loyalty from consumers.

“Platinum continued to take (market) share from white gold,” it said. “Platinum is engaging the next generation of consumers.”

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Source: The National Association of Jewellers