Platinum Market Has Gone Platinum April 8, 2004 – Posted in: Press

By LUCIO GUERRERO
Published: April 8, 2004
Chicago Sun-Times

Platinum has become hugely popular in recent years for wedding rings and other high-end jewelry, but skyrocketing prices are chasing some consumers away.

The price of platinum is up 35 percent in just a year, 70 percent over the last two years. It hit a 24-year high earlier this month when the price peaked to $900 an ounce.

Analysts believe this price can go even higher — reaching $980 by the end of July or $1,000 by the end of the year.

“It’s just crazy,” said Mike Kelly, of Diamonds Chicago, a jeweler in Chicago’s famed Wabash Jewelers Mall and Jewelry Center. “The price is so high that people are looking at ways to make rings more affordable.”

A large demand in platinum — especially in the Asian market — is being blamed as one of the culprits for the sharp increase. The large demand for diesel cars, which use platinum in their pollution control devices, is also driving the price.

The fear of inflation, rising fuel prices and the war in Iraq have also helped bring the price up.

Kelly said he sometimes tells customers who may be on a budget to consider white gold instead of platinum as a way to keep costs down.

White gold, which costs about half as much as platinum, has been used since the 1920s as a substitute for the pricey metal.

The only drawback to white gold is that it can sometime turn yellow over time. But rhodium plating can restore the platinum look on a white gold ring for about $50.

“I tell people a lot of times that there is more bang for the buck for white gold and it looks the same,” Kelly said. “Even with the plating, it will cost less in the long run.”

But there are still those folks who want to have platinum — even in these high-price times.

Many people are turning to estate jewelers to get their platinum fix because the prices are cheaper since the jewelry doesn’t need to get made at today’s prices.

“There’s just a difference in having platinum,” said Monique Djerf, of Chicago, who recently bought two antique platinum rings with her husband as fifth anniversary gifts. “We had white gold engagement rings but wanted something different — and platinum is beautiful.”

And it’s still a showpiece, according to some jewelers.
“Platinum is the Rolls-Royce of metals for jewelry,” said Tobina Kahn, of the House of Kahn, an estate jewelry store on East Walton where 90 percent of the jewelry is made of platinum.
Platinum has become more precious as demand and other factors boost its value.