The continued high cost of platinum can be supported with the help of jewellery sales over the coming years, according to a leading mining firm.

South African outfit Anglo Platinum (Angloplat) believes that despite plans to increase platinum use in the automotive and industrial sectors, sales of platinum jewellery will be the key player in supporting prices over the next five to ten years, according to the Reuters news agency.

The firm's executive commercial director, Sandy Wood, told a conference in Tokyo that increasing supplies of platinum "should have a moderating effect on the price, but how far the price comes down over time will depend on how well the jewellery industry recovers to absorb the extra ounces at a lower price".

As with most commodities, sales tend to decline when prices rise, although Mr Wood claims that this is more the case with jewellery than other items.

"We see the jewellery industry playing a very important role in our overall demand structure because the jewellery industry is more price sensitive than any other industrial use," he explained.

Angloplat produces around two fifths of the world's platinum, making it the industry's largest firm.


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