Platinum is forever

All that glitters is not gold — it’s platinum. With prices soaring, more people are opening up to the idea of the metal not only as jewellery but also as an investment option, finds Geetanjali Jhala

In India, traditional bridal jewellery was always gold. Platinum has only recently made its debut as part of the bride’s trousseau.

For those who want to break away from traditional gold, platinum gives you another option. And not just wedding jewellery. There’s a saying: What you wear reflects the kind of person you are.

Platinum — whether it’s a simple wedding band, cufflinks, a diamond necklace or a classic solitaire ring — is a reflection of your inner beauty, strength and style.

Most people prefer white gold to platinum, because the polish can be changed from white to yellow. With platinum, you don’t have that option. “Though white gold gives much of the same effect as platinum, there is a difference; diamonds look better on platinum,” says Queenie Dhody, socialite and former Miss India.

“I personally think platinum is one step ahead of gold and gives a more solid feel to jewellery than gold does.”

Another thing that sets platinum apart is its exclusivity. Platinum jewellery is 95 per cent pure, while gold only 75 per cent. This makes it harder to set diamonds and stones in platinum, making platinum jewellery more expensive than gold.

“It’s highly priced, and only a small segment of people buy platinum jewellery,” says Upendra Bothra, partner, Nayaab jewellery store. “It’s not as liquid as gold, so most jewellers aren’t equipped for platinum sales.” You won’t find platinum jewellery at every store, just a few high-end stores and designer jewellery boutiques.

Because it’s so subtle, platinum jewellery can be worn every day; and because it’s so pure, it’s hypoallergenic too. Platinum is pliable, a quality that allows jewellers to create versatile platinum mesh accessories, which can not be fashioned from other precious metals.

So it has the shine, grace and resplendence of gold, but as far as investment goes, it is still not as good as gold, right? Jewellers believe that platinum is, in fact, as good an investment as gold, and the future of the metal looks good. “Platinum is the purest and rarest metal available, so prices will always rise,” says Vinayak Gore, spokesperson for Tribhuvandas Bhimji Zaveri (TBZ).

Like the rate of gold, a history of platinum shows that the prices haven’t nosedived yet. In fact, platinum prices have skyrocketed, and those who had bought the metal as an investment are now smiling all the way to the bank. “The demand of platinum in the world in far ahead of the supply,” agrees Vaishali Banerjee, country manager, Platinum Guild International (PGI). “So there’s very little metal to play around with.”

The few designer jewellery brands that do make platinum jewellery have to maintain strict quality standards. The PGI verifies the platinum and issues a certificate — a UL (under right laboratory in London).

Even while selling the jewellery, the certificate will be assurance of quality, getting you the market value of the metal as on that day. Brands that sell platinum jewellery also have a buy-back policy, just the same way as most brands offer for gold.

“We buy the jewellery at the market value of platinum, minus the making charges,” says Mahesh Patni of Orra jewellery store.

The certificate is sufficient as a quality check. “It’s the same case with gold. Purity of either metal cannot be gauged and that’s why they have certificates,” says Preeti Pruthi of Notandas Jewellers. “If you’re looking at it in terms of investment, you can always buy both gold and platinum.”

There are some who don’t wear the jewellery, but buy the metal anyway as it makes for a good investment. Brands like TBZ and Orra, for instance, make platinum bricks and coins at the customer’s request. But unlike gold, you can’t buy platinum from banks yet and there are no exchange trade funds (ETFs) for platinum in India. “At the international level, a platinum exchange trade fund is already in place,” Banerjee says.

“Over a period of time, in India too, there will be other forms of investing in the metal.” Gore of TBZ, agrees: “Although investment levels are low, the metal is certainly moving towards a bright future.” 
j_geetanjali@dnaindia.net