The ‘Now’ metal?
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Lighter and cheaper than platinum, palladium could be the new white gold
In the last few years, palladium has become the buzz word in the jewellery industry. More commonly known for its use in reducing harmful pollutants from automobiles, in the form of catalytic converters, it is up for debate whether palladium is becoming the “Now” metal for fashion.
In fact, the term “Now” metal is a catch phrase designed by Palladium Alliance International. The intention is to establish it as a ‘luxurious, precious and distinctive metal’, according to their website.
Currently in oversupply, palladium is sitting at around US$282 per ounce. This is a steal compared to other common metals used in jewellery manufacturing such as gold, which is at US$796 per ounce, and platinum which, even after recent price drops, is around US$1384 per ounce.
Palladium certainly has its perks besides price point. Unlike gold, which is yellow in nature and has to be plated with another metal in order to achieve the colour white, palladium comes straight from the ground in its silvery-white hue.
“What we are looking to do is replace, what we call white gold, which really is no such thing as,” said Dawn McCurtain, North American Marketing Director for Palladium Alliance International.
In comparison to platinum, which is also naturally white, palladium is less dense. It is almost half the weight of platinum by volume. “That brings some benefit to it as well,” said Mark Danks, Marketing Manager for Johnson Matthey in New York. “You can make much larger or bolder pieces and hit different price points than with platinum.”
Not everyone is convinced of palladium’s potential. In the August 2008 issue of Jewellery Business, industry professionals were asked their opinion on the metal and its future in jewellery. Ulrich Dehez, master platinumsmith for Platinum Unlimited Inc. was quoted as saying, “Differences in colour between palladium and platinum, as well as various technical challenges, have kept palladium jewellery from becoming a strong seller so far. Therefore, we see palladium alloys only as an alternate to high-carat white gold jewellery. Platinum is, and always will, be the only premium white metal for high-end pieces.”
Danks also said that the industry needed to avoid viewing palladium as just an alternate. “If you start talking about palladium as a “different” platinum, then its just not going to have any legs,” he said. Danks said it needed to be more broadly marketed for its own qualities. According to him, Palladium Alliance International had done well to market to manufacturers, but it needed to be taken further.
“You have also got to do that with every one else down the line, whether its retail or the consumer. The consumer needs to see more about it.”
Robert van Mil, designer for Van Mil Design was also quoted in Jewellery Business as saying, “Designers should move away from using palladium as platinum’s cheap cousin, and start creating jewellery that is unique to this metal if it is ever to have an impact.”
In the same article, Danks agreed that people did come in contact with manufacturing and design challenges, but the same was true for platinum. “People just need to get used to the fact that it’s different,” he said. “But that does not mean it’s difficult.” Due to its physical and chemical properties, palladium can become brittle and crack if proper tools and procedures are not used.
However, Johnson Matthey, Palladium Alliance, as well as a number of other companies, are attempting to work out any “issues” with the metal. They have offered their services to tackle questions and concerns, as well as tips and tutorials to help manufacturers and retailers work around the challenges.
“We have our own technical CD,” said Danks, “through which we are trying to address issues right through the manufacturing process, so that the manufacturer or even a retailer, if they have servicing work to do, can turn to our manual and see what we recommend.”
The main barrier to palladium’s success, however, still seems to be its under-the-radar status with the general public. People just do not know about it yet, said McCurtain. “The same rock that platinum comes out of, palladium comes out of. They are sister metals…it’s just that one has been promoted and marketed and one hasn’t.”
The demand from the consumer needs to take off if palladium is going to gain any footing in the industry. The question is whether or not the industry is up for the challenge.
In Jewellery Business, Shelly Purdy, designer for Shelly Purdy Studio said, “Promoting new ideas to the customer is something that requires much energy and commitment. The customer isn’t necessarily looking for palladium jewellery at this time, so it needs to be sold, rather than offered like platinum and white gold.”
Palladium Alliance holds that palladium is mined with and to the same extent as platinum, and thus is just as valuable. However, there has just always been more of a surplus of palladium in the market. “It is basically about what you are getting for what you are paying,” said McCurtain, “and you are getting a lot for what you are paying.”
Tags: catalytic converters, gold palladium, Jewellery Business, jewellery industry, johnson matthey, metals, oversupply, palladium, Palladium Alliance International, platinum, prices, white gold
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