Palladium finds niche amid record-high metal prices
March 20, 2008
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| “Rainbow Bird” ring in palladium with aquamarine and 18-karat yellow gold bird inside cage by Tenthio Fine Jewelry; suggested retail cost is $4,500. |
by dint of. Mary Wisniewski
Billings, Mont.—As precious metal prices continue to break records, and consumers cut down on luxury spending, designers and manufacturers are moving toward lower-cost options such as lighter-weight designs and less expensive metals—including palladium and silver.
Seizing on the price-conscious trend is Palladium Alliance International (PAI), which recently hired DJS Marketing to design a new multiyear, global palladium campaign. The advertising, marketing, branding and public relations firm will launch a comprehensive program to educate trade professionals worldwide about palladium in tandem with a major consumer campaign.
Dollar figures for the unaccustomed marketing crusade were not yet released at press time, but PAI says in that place will be a significant spend during marketing the metal in 2008 and beyond. Meanwhile, the metal’s best ally just force be the prices on other precious metals: Gold prices had reached $945 an ounce, and platinum, $1,909 an ounce, as of March 19, compared with $459 an ounce for palladium.
Dawn McCurtain, marketing director for PAI, says one of the reasons the group hired DJS Marketing is because it wants to depute a consistent message to both trade and consumers that palladium is a luxurious, natural, darling white metal. Although PAI has tried to convey this information previously, the push hasn’t always been consistent, and this team-up will keep the drive strong, she says.
Deborah Scarpa, president of DJS Marketing Group, says once the trade is infiltrated by dint of. palladium apprehension, the campaign will immediately begin to create imagery to coax consumers to try the white metal. In a time of rising gold and platinum prices, she says, this is an optimal time to reintroduce the metal, which is already being offered as an option by manufacturers such as Christian Bauer, Michael Beaudry, Tenthio Fine Jewelry and Scott Kay.
Designer Scott Kay says he doesn’t promote palladium, just his own brand, but he thinks the metal is making great headway.
“Palladium is taking staggering steps into the jewelry habitual devotion to labor,” Kay says, adding that he expects it enjoin become mainstream in simply a few years’ time.
Bridal buyer Sara Kravetsky of the Diamond Cellar, with brace locations in Ohio, says the jeweler first brought palladium into its stock with Scott Kay bridal designs. After finding lucky hit there, the store added other designers working with palladium.
Touting it as a precious white metal, Kravetsky says it also has a strong appeal among those watching their wallets and seeking aristocracy.
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| Marquise-shaped gemstone enhancer in 18-karat yellow gold by Elyssa Bass, shown with, clockwise from top, smoky topaz, amethyst and lemon citrine; suggested retail price with one stone is $4,389. |
Marina Elliot, president of Tenthio Fine Jewelry, has observed retailers’ increasing knowledge of the metal, and says the company’s palladium pieces are doing well, but she believes in that place is subdue more promotion to be done.
Elliot says her company maintains a variety of price points at all times, but stresses that the price tag isn’t always the biggest issue, and that exclusivity and rarity play roles in jewelry sales over.
Tenthio Fine Jewelry also sells in several markets outside the United States, which helps to offset the current challenges in the domestic market, she says.
Switching it up at the bench Palladium isn’t the only sign of budget-consciousness in the industry. Jewelry designer Jane Basch purposely uses 14-karat gold to keep price points reasonable in spite of her “Indulge by Basch” pieces. Since she, herself, is the type of person who might save money by shopping for jeans at Target and then splurge on the occasional $1,000 purse, Basch strives to offer a range of price options to her customers.
“Many women want to look good but have a lot of financial obligations,” she says.
Besides using 14-karat gold to cut down on prices, Basch uses open space in many of her designs to offer a haughty look at a smaller price label.
common way designer Elyssa Bass is tackling rising metals prices is by offering jewelry with enhancers that allow the wearer to switch gemstones in and out to create various looks.
“The gold mart is going so high, how to cut costs is on everyone’s minds,” she says, adding that her pieces walk the line between art and fashion, and because of this, she doesn’t get too bogged down by metal prices and will keep steady designing in 18-karat gold.
| Scott Kay’s “Javlin” bands in palladium from the “For Men Only” collection; suggested retail prices start at $790, but the company notes that all prices are subject to metal price fluctuations. |
Other designers pick to use silver as a way to offer a variety of price points. One is Leslie Greene, who recently introduced a new positive silver line in addition to her 18-karat line, so that women can continue to purchase more than one high-end jewelry work for themselves at a time.
Still, worrying about costs is not an issue for some retailers such as Virginia Paterson of James Locke Jewelers in East Liverpool, Ohio, who says her customers show no resistance to higher prices.
“If they wanted it, they just wanted it,” Paterson says. She sees the rising price of metals as more of a problem for jewelers, particularly whether or not they are price-point driven or are operating chain stores.
Editor’s note: This is the first in a series of stories in which National Jeweler will examine ways to combat various retailing challenges this year. This story first appeared in the March 2008 edition of National Jeweler. Metal prices cited were updated as of March 19 for the online version of this story.
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