The head of a major player in the US platinum jewellery industry has claimed that the current price represents an excellent chance for consumers to buy some luxury pieces, National Jeweller reports.

Platinum hit a record high of $2,200 per oz last May but the price has since fallen by around 60 per cent, with the precious metal trading at $987 per oz in late January.

Although the situation presents a number of challenges to jewellers, Huw Daniel, President of Platinum Guild International USA, has explained that it also creates opportunities.

He told the publication: "Historically, there has been a gap between the high level of design and sales because the price of platinum has been a barrier to quite a few consumers.

"What we're seeing now is the desire and demand is still there, but the price has come down. If you're looking at the price differential, it's an opportunity for the consumer."

The upshot of the current landscape is that jewellers face a conundrum over their pricing strategies as they look to maintain their profits in the tough economic environment.

One Michigan-based company, Edmund T Ahee Jewellers, is seemingly leading the way in stimulating the market, reporting sales increases of 80 to 95 per cent when it lowered its prices.

Peter Ahee, President of the firm, told National Jeweller: "We will take a loss if we bought something at the high price. You take a short-term loss, but it'll average out."

The concept of averaging out will presumably come to fruition when the economy begins to recover and a return to traditional supply and demand fundamentals emerges.

As Mark Danks, Sales and Marketing Manager for leading platinum refiner Johnson Matthey, explained to the magazine, this scenario would see "some pressure on the upside".

Source:

Platinum price plunge brings chances, challenges (03/02/09)
http://www.nationaljewelernetwork.com/njn/content_display/fashion/jewelry-fashion-reports/e3i13737d33d3dd0ebe6a7119d753e60bb6