Increased demand for precious metals around the world is driving up the base prices of metals like gold and platinum - but a platinum wedding ring or gold wedding ring is still an affordable dream for couples about to marry.
If the jewellery industry relied solely on newly mined platinum, the rising prices of base metals would be bad news indeed for consumers. But increased recycling of platinum - especially in China, where industrialisation is boosting demand and prices sharply, and Japan - is helping to keep jewellery prices down without any loss in quality.
Growing demand for raw materials
Global demand for raw materials has soared in recent years. Rapid economic growth in countries like China, India and Russia increases demand for commodities faster than people can get them out of the ground.
As well as needing metal like gold, copper and platinum, and other substances like diamonds for industry, more industry means more wealth - and more people in China, India and Russia are likely to buy a valuable wedding ring than ever before.
The rising price of platinum led in 2006 to a slight drop in the volume of platinum jewellery being produced from new (ie, freshly mined) metal. This should have led to the cost of platinum wedding rings going up as demand outstripped supply.
However, according to platinum mining experts Johnson Matthey, “purchases of new metal by manufacturers were further reduced by a sharp increase in recycling of old jewellery in China and Japan.”
Platinum recycling good news for wedding ring buyers
Their findings - published in a report on the state of the global platinum market - go on to say that “upwards of a quarter of manufacturing requirements was satisfied by re-using metal from second-hand jewellery and unsold stocks.”
That means that for every three wedding rings made from new platinum, one is made from old stock. This eases the upward pressure on prices, because supply is better able to keep up with demand.
And because platinum is one of the most durable substances known to man, there is no loss of quality. Someone owning a wedding ring made with restored platinum would see no difference from one made with new metal.
Second-hand market for wedding ring set to boom
As an extra bonus for those thinking of investing in a platinum wedding ring to mark their marriage, the demand for “old jewellery” means secondhand jewellery prices should stay at a competitive level for some years yet - possibly leading to a booming seller’s market.
So as well as buying a beautiful token of eternal love, to buy a platinum wedding ring is to invest in an item with a lasting intrinsic value.