Price increases forced by the rising value of platinum has helped to push up Tiffany's profits by 37 per cent, the company has revealed.

Tiffany's flagship store on New York's Fifth Avenue saw sales increase by 12 per cent during the third quarter, with platinum and diamond items selling for at least $3,000 as demand for the precious metal continues to surge, particularly among the wealthy.

The increase in sales has pushed the jeweller's profits up to $23.8 million for the three months to October 31st, although the company revealed disappointing returns in its Japanese operations.

Michael J. Kowalski, chairman and chief executive of Tiffany's, said in a statement: "Based on these results and our expectations for customer demand during the holiday selling season, we are maintaining our previously published expectations for full year 2005 net sales growth of eight per cent to ten per cent."

Despite the fact that platinum prices have risen to record levels in recent months, the demand for pieces appears not to have wavered, helping to bolster Tiffany's results.

Tiffany has embarked on a major expansion programme over the past year, opening new stores across North America, Mexico and has recently announced plans to open a store in Macau, as it looks to target the Asian market.


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