With bullion breaking down today, the gap between platinum and gold prices is widening.
As I write, platinum is trading at a 6% premium to gold. About $75 difference.
The platinum group metals have been buoyed lately by supply problems in major producing nation South Africa. But a few other interesting tailwinds emerged this week from an unexpected source. The jewellery sector.
Stats on U.K. jewellery hallmarking were just released for May. The numbers show that platinum use is holding up well. During the month, creation of gold jewellery fell 29.3% year-on-year. Silver jewellery was similarly down 23.7%.
But platinum hallmarking held firm, down only 6.5%.
Other organizations have also reported growing demand for platinum group jewellery. Market analysts CPM Group said this week that fabrication demand for palladium was up 5% in 2012.
Jewellers in the West have been working hard to break ground with platinum group metals. It appears the efforts are making headway.
Interesting that it’s happening at the same time as a supply crunch looms for the PGEs.
Here’s to wearing the finest,
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