Platinum Picks Up Momentum

Gold is old and Platinum is in! So say the increasing number of trendy denizens of jewellery-crazed Hyderabad, as the metal becomes a fashion statement in the twin cities.

The expensive metal has had its place in the jewellery lovers hearts here all this while, with even one of the world’s most famous diamonds Koh-i-Noor secured by platinum settings,but it's expected to get a boost with next week's entry of the Platinum Guild India into the city markets. Platinum Guild India is a body of traders and is an arm of the Platinum Guild International headquartered in Britain.

More and more youngsters are getting attracted to platinum jewellery and the awareness is on rise, even as a host of pop icons like Madonna and Britney Spears swear by it and flaunt it.

"Gold traditionally might be favourite and form the bulk of purchases, but platinum is rapidly gaining sheen here," says Umesh Jetwani, MD of Meena Jewellers, member retailer of Platinum Guild India.

Earlier, because of lack of authorised dealers of platnium jewellery there was a little bit of hesitation in customers as there was no way to test. There was a market for platinum, like some section of Muslim men who weren't supposed to wear gold, who opted for this metal.

But, it is youngsters who are consciously buying platinum now. And with Platinum Guild India certified jewellery being launched here, the market will grow by 70 to 80 per cent annually, he says.

Platinum’s untarnishing whiteness is its main attraction, the jewellers say, adding that though it is understated, platinum jewellery communicates a message of taste and subtlety.

Platinum is the rarest of all the precious metals making it a highly prized possession. It's so rare that 10 tons of ore have to be minded to produce a single ounce of platinum. It's hypoallergenic properties make it available to wear to anyone, they add.

People often mistake platinum with "White Gold," but while platinum is naturally white, white gold is artificially coloured by adding other metals and is frequently rhodium plated. The plating can wear off and the colour underneath is often not as white as that of platinum. Though costs are a bit prohibitive (platinum is twice as expensive as gold, trading around Rs 1,000 or more per gram), but the softer feel and weightier, harder persona are driving many to adopt the metal. "The concept is relatively new, about 1-2 years, with people now actually asking for platinum. Mostly working women, who don't want to appear decorated like a Christmas tree, and want to make a subtle statement, are going for platnum. Diamond studded variety like rings, bracelets and chains with pendants are making good sales," says S G Zaveri, chief of Mumbai-based Tribhovandas Bhimji Zaveri jewellers, which recently set up shop here.

The store houses a separate Platinum Collection of plain and studded jewellery. Jewellers too are preferring platinum as one of its main advantages for jewellery fabrication is its strength and resistance to tarnish. It can be repeatedly heated and cooled without hardening and oxidation effects, while even the most slender sections of platinum permanently retain their shape, providing a secure setting for diamonds. Designers prefer platinum for both diamond and coloured stone jewellery because of its strength and durability. Platinum prongs show little wear, and thus offer precious stones greater protection.

Platinum jewellery is being made in India by three certified manufacturers -- Shrenuj, InterGold and Kama, whose brands are sold by the city retailers. Hyderabad is one of the biggest markets for the new metal along with Chennai and Bangalore.

Over time, like China, India is expected to grow into one of most important markets, especially in the South, says Jetwani. Something that experts agree. In a presentation called "Platinum Investment Demand" at the IPMI 25th Conference in Tucson in June this year Aran Murphy said there are two potential markets for platinum investment in India.

"There are the large investors, who may buy large bars and coins. These would be the urban speculators, who would most likely be traders. While of some interest, these types of investors are not as ideal for platinum producers as are the small investors, who might buy medallions and coins, as a form of personal savings in a country that is not as confident in its financial institutions, or as gifts.

One of the favorite pro formas to be used in the platinum industry is that if 2 per cent of the gold market share in India can be captured by platinum, be it in jewelry or investment format, the total would contribute an additional 500,000 ounces a year to overall platinum demand, he adds.