New York (August 2006) - The future looks bright for Platinum jewelry in the US market. If consumer data and industry reports hold true, 2006 will prove to be a stellar year for Platinum jewelry sales, particularly in the bridal market.

The bridal industry is a booming market with consumers ready to invest large budgets on their weddings. According Condé Nast Bridal Group's American Wedding Study (2006) consumer overall spending on the wedding increased 83 percent in the past decade. The bridal ring category (e.g., engagement rings and wedding bands) has seen the largest growth in terms of dollar sales. Couples today are spending more than double on their engagement rings and wedding bands. Consumer research shows that wedding rings are a $4.5 billion dollar opportunity, alone.  The number of weddings is expected to grow by nine percent in the next 10 years.
Jewelry sales reports across the country show that when it comes to bridal rings, Platinum is growing and is consumers' number one choice.

On the manufacturing side, Novell Design Studio reports an eight percent increase in Platinum wedding band sales since January.  The company reported men's two-textured bands (matte with highly polished edges) among their top sellers. A. Jaffe and Jeff Cooper also reported that this style sold very well in Platinum, with particularly little resistance to price.

From a retail perspective, Fink's Jewelers (stores in VA and NC) reports a 16 percent increase in Platinum jewelry sales since 2005. "At Finks, we sell on value, not on price.  We know that Platinum is the quintessential metal for bridal jewelry because of its purity, rarity and because its meant to be worn for a lifetime. Our sales team effectively communicates those values to our customers. We will not sell our customers less than what we feel is the best for them," states Marc Fink, President and CEO.

Dohono's Jewellers (Houston, TX) reports a 22 percent increase in overall Platinum jewelry sales this year. The high-end retailer touts customer education as a key component of their success. "2006 has been a phenomenal year for Donoho's.  The increasing price of Platinum has only helped our business, because it has drawn more attention to the metal," says Barry Donoho, President and CEO of Dohono's Jewellers. "We are also devoted to educating our customers on the difference between metals. Helping them literally 'feel' the difference has been a major selling point for Platinum. Few retailers are as dedicated as we are to educating every customer who walks through our door. People who shop at Donoho's understand the value of their purchase," he adds.  Donoho's has devoted a room within the store floor-called the "Rock and Mineral Education Museum"-where customers can be educated on diamonds, precious gemstones and precious metals.

Mervis Diamond Importers (stores in VA, D.C. and MD) reports a five percent increase in overall Platinum jewelry sales in 2005. The retailer-voted "Best Place to Buy a Diamond" in a 2004 online survey by Washington Post readers-only offers Platinum as the white metal option for bridal rings. "Our clients have no objection to Platinum. They are highly educated and are very aware of Platinum's increasing price. Our core business (80 percent) is bridal. We take our customers through the loose diamond purchase to a large variety of settings options that suit their individual styles," says Ronnie Mervis, President and CEO.

Thirty-five percent of retailers across the country, participating in PGI-USA's Preferred Platinum Partner Program, reported an average increase of 14 percent in Platinum jewelry sales in 2005. The Preferred Platinum Partner Program, which kicked-off in February 2006, is a vertically integrated marketing program designed to help all levels of the trade increase transaction size and profit dollars via sales of Platinum jewelry. At the core of the PPP program is an aggressive advertising campaign designed to drive consumers into retail stores.

Further, recent research on luxury spending overall indicates that the jewelry industry may not truly be taking advantage of record high desire for luxury goods and specifically Platinum jewelry. According to research by the Condé Nast Bridal Group, 81 percent of brides-to-be prefer Platinum to other precious metals. In 2005, personal luxury spending (which includes jewelry) grew by only 5.6 percent, while "experiential" luxury spending (which includes beauty) doubled in size (Unity Marketing, 2006). Generation X (Americans born between 1965 and 1976) actually spent more on luxuries in 2005 than their older baby-boomer counterparts-$52,781 per Gen X household versus $49,762 per boomer household (Unity Marketing, 2006).

"We live in a marketing environment where for decades American Express, the record industry and the airlines have indelibly etched into the minds of consumers that Platinum is the ultimate level of success and achievement. The jewelry industry cannot lose sight of the power of Platinum's stature. The jewelry industry is one of the few industries where the customer who comes in desiring a Mercedes is regularly down-sold to a Taurus. We need to sell on value, not on price," says Terry Sisco, President of ExSellerate!, a leading retail sales & marketing organization. "Sales people behave the way they believe. If they believe that they cannot sell Platinum, they won't. If they believe Platinum is the best option, they'll capture the 81 percent of customers who want it," Sisco adds. Retailers who participated in ExSellerate's selling skills seminars have reported a 35 to 50 percent increase in Platinum jewelry sales.

At The World Jewellery Confederation (CIBJO) annual congress in Vancouver, British Columbia on July 24, CIBJO president, Gaetano Cavalieri, called upon the jewelry community to invest in instilling a fine jewelry culture in younger consumers in order to guarantee the long-term health of the market. "Young people today are seduced by a great number of different industries to spend their non-essential dollars.  Travel, electronics and entertainment appear to attract them more than a well designed and valuable item of jewelry".

According to a recent Teen Vogue It Girl survey (2005), 62 percent of teenage girls consider Platinum to be the best of all precious metals.  One third of survey participants already own at least one piece of Platinum jewelry. When asked to pick out their engagement ring, over half chose a Platinum engagement ring with a princess/square stone in a vintage/antique setting. This indicates that even in the early acquisition years, younger consumers already know Platinum's value and are already predisposed to purchase it.

Industry successes indicate that jewelry houses can continue to take advantage of Platinum's increasing profit potential through effect point of sale techniques that sell Platinum on value, rather than price. If the market trends indicate consumers' shopping habits, Platinum's high value will prove to be an opportunity for increased bottom line profits.

Platinum is prized for its Pure, Rare and Eternal qualities:

PURE: Platinum's high level of purity (generally 90%-95% pure) endows it with both a natural white luster, allowing the true radiance of a diamond or gemstone to shine; and hypoallergenic qualities that prove ideal for sensitive skin. Only the purest Platinum jewelry will bear a stamp reading "PLATINUM", "PLAT", "Pt 950", or "Pt 900", signifying the jewelry is 90% to 95% pure Platinum.

RARE: PLATINUM is 30 times more rare than gold.

ETERNAL:  Platinum will hold a diamond or gemstone securely, now and for always.

About Platinum Guild International (PGI)

Platinum Guild International, the marketing arm for the worldwide Platinum jewelry industry, is dedicated to supporting and promoting the high purity, rare and eternal qualities of Platinum to the consumer and jewelry trade.  PGI has offices in each of the world's major jewelry markets; providing information, assistance and education on all aspects of Platinum jewelry.

For more information on Platinum, please visit www.platinumguild.com.

CONTACT:
Antonia Caamaño
Platinum Guild International USA
(212)404-1605 / acaamano@pgiglobal.com