Palladium Wedding Ring

Until recently, palladium was only used in jewellery as an alloying element, notably to bleach gold’s natural yellow colour closer to that of platinum.  Now this “new” metal has started to gain attention as a jewellery material in its own right.

With the popularity of palladium products, particularly palladium wedding rings, the UK assay offices have introduced hallmarking of palladium jewellery.

After only a couple of weeks as an “official” precious metal for jewellery, with its own legally recognised hallmark,  palladium looks set to add to the continuing increase in demand for white precious metal jewellery.

The Palladium hallmark, which like all other UK hallmarks can only be struck in the UK by one of the four independent Assay Offices, came into force on July 22nd. Until 31st December 2009 this mark is voluntary and yet in the first few days till the end of July nearly 5,000 articles have been hallmarked by the four UK Assay Offices,  Birmingham, Edinburgh, London and Sheffield (for more information visit the BJA website).

One of the advantages of palladium over other precious white metal has been the cost, but with the introduction of hallmarking and the huge increase in demand the price of palladium jewellery will undoubtedly rise through 2010.

Pink Diamond Heart Ring

Diamonds that have been coloured using irradiation treatment have brought stunning diamonds to the market at prices that everyone can afford.

The process of irradiation treatment means that the yellow brown diamonds, which weren’t particularly sought after or valuable, can now be turned into something much more appealling.  From yellows, blues, greens and particularly pink diamonds, these can be turned into fabulous looking pieces of jewellery.

If the ring, pictured to the left, had a natural pink diamond then you could expect to pay upwards of £100,000 for it.  As it is this particular piece retails at less than £5,000!

Gold Bullion Bar

Over the last 10 years gold prices have soared taking the cost of gold jewellery products with it.  It was reported in the Economic Times last week that:
Gold prices are likely to touch fresh high in the second half of the current year on the back of investment demand and over-the-counter market, global metals consultant GFMS said in a report.

“Looking at the second half of 2009, investment demand, and especially its western elements, which includes activity in ETFs, futures and the OTC market, is expected to remain the driving force behind gold price movements,” GFMS Executive Chairman Philip Klapwijk said in the report. See story here

So are the investment markets driving the price of gold beyond the reach of the average gold jewellery customer.  Unfortunately for the jewellery industry the answer is increasingly becoming “yes”.   So what does this mean for gold jewellery demand? Well to us there has been a noticable shift from demand of 18ct gold jewellery to 9ct gold jewellery and an even bigger shift away from gold althogether to other precious metals.  Platinum has become reletively more attractive and sales of palladium products, especially palladium wedding bands has gone through the roof. So don’t write off the expensive gold jewellery market, there will always be a demand, just diversify and protect yourself from the effects of the investment market.