U.S. Platinum Jewelry Demand Starts 2022 on a Strong Note

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U.S. Platinum Jewelry Demand Starts 2022 on a Strong Note
PGI said sales of its Platinum Born collection, pictured here, doubled year-over-year in Q1.

Retail ounce sales were up 23 percent year-over-year in Q1, according to the recent Platinum Jewellery Business Review.

Despite supply chain challenges and economic obstacles associated with the Russia-Ukraine war, platinum jewelry sales in the U.S. started the year on a strong foot.

According to the Platinum Guild International’s most recent Platinum Jewellery Business Review, platinum jewelry ounce sales at PGI’s U.S. partners were up 23 percent year-over-year in the first quarter.

Bridal jewelry and gemstone fashion jewelry saw strong momentum during the quarter with double-digit growth compared to the prior-year period, while diamond fashion jewelry sales jumped by double digits, according to PGI.

PGI also noted its branded collection, Platinum Born, saw sales double in Q1.

All of this came despite the U.S. GDP contracting by an annualized rate of 1.5 percent in Q1, reflecting decreases in private inventory investment, exports, and government spending.

Also, in March, inflation across all categories rose to historic levels—8.5 percent year-over year. The stock market rose during the month but then stumbled again on the last day of the quarter.

The Consumer Confidence Index was up slightly in March following a February increase, though it was still below January levels, and the Expectations Index maintained its downward trend amid increased concerns over rising prices and the Russia-Ukraine war, challenges that are expected to limit spending further in the months ahead.

Still, PGI said its U.S. partners are predicting positive results for the rest of 2022, noting the jewelry industry may have some insulation against continued inflation as luxury consumers are not yet feeling the squeeze.

Consumer Sentiment

PGI also conducted a consumer sentiment survey, interviewing 2,000 jewelry buyers and wearers from ages 18 to 65 in four key markets—China, India, Japan, and the U.S.—who have bought or expect to buy fine jewelry.

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