Entire Annual Report - Anglo American Platinum

PLATINUM JEWELLERYDespite the strong upward trend in the platinum price during the year,overall demand for the metal for jewellery fabrication remained firm.2 0001 6001 200800400Growth of platinumjewellery marketsoutside Japan000’s/ozPlatinum JewelleryJapanJapanese demand for platinum in jewellery fabrication, however,declined in 2000 by an estimated 15% to 1,125 million ounces, althoughdemand at the retail level remained firm, as shown by the fact that thenumber of platinum jewellery pieces sold declined by only 4% byvolume and by 2% in value. Higher metal prices resulted inmanufacturers destocking and moving some lower price point piecesinto other metals. In addition, some metal for fabrication was sourcedfrom recycled items. The weaker economic situation in Japan,exacerbated by higher platinum prices, resulted in platinum losingsome ground to gold at the lower end of the market. Platinum’s positionat the higher end of the market remains firm, accounting for over 90% ofengagement ring and over 80% of wedding ring purchases.USADemand for platinum for jewellery fabrication in the USA rose duringthe year by an estimated 15% to 380 000 ounces. This growth has occurredlargely in the bridal and gem-set market, which is not greatly influencedby the price differential between platinum and gold. The phenomenalgrowth in platinum absorption in the bridal market is aresult of focused marketing support by PGI (USA)Jewellery and the jewellery trade, resulting in0199519961997199819992000Rest of worldEuropeNorth AmericaChina35