Jeweller - June, Edition I 2020

More documents

Recommendations

Info

REFINING FEATURE | Liquid Gold a 10-year low, and tumbled 39 per cent compared with the same period in 2019. “Almost without exception, jewellery markets across the globe recorded year-over-year losses as the impact of the coronavirus compounded the effect of high, and steeply rising, gold prices,” the report explained. “Almost without exception, jewellery markets across the globe recorded year-overyear losses as the impact of the coronavirus compounded the effect of high, and steeply rising, gold prices” – World Gold Council, Gold Demand Trends Q1 2020 report During the same period, platinum jewellery demand fell 26 per cent, according to The World Platinum Investment Council (WPIC)’s most recent Platinum Quarterly report. China’s platinum jewellery manufacturing alone had declined 45 per cent compared with the same period in 2019. Meanwhile, silver jewellery fabrication is predicted to decrease by 7 per cent in 2020 – its most significant contraction in four years. Yet Hayes points out that despite reduced demand from the jewellery sector, the silver price has mirrored gold’s upward trajectory. “Silver has very much followed gold, but in the last couple of weeks silver prices have strengthened more strongly – they have outpaced the gold price increases,” he says. Adam Van Sambeek, treasury manager at Morris & Watson in Auckland, notes that alongside increased demand from investors, “supply constraints brought on by trade and production restrictions have also pushed gold and silver prices higher”. These factors – ‘safe-haven’ appeal and reduced supply – assisted gold, silver, platinum and palladium prices to a robust recovery from an initial the coronavirus demand shock, which saw prices plunge in March as the pandemic peaked in the US. In particular, palladium – a key agent in creating white gold, aside from nickel – fell 43 per cent from its February peak of $US2,754, driven by a dramatic decrease in demand from the Chinese automotive industry. However, by 31 May, it had recovered to $US2,011. Indeed, palladium has been the best performing commodity for the past two years, according to Forbes, with prices increasing by more than 85 per cent between August 2018 and March 2019. The pandemic’s impact on platinum is less dramatic, and prices have also stabilised. The WPIC report, published 18 May, noted, “Due to dynamics peculiar to platinum and unrelated to the pandemic, the overall negative effects [of COVID-19] are far less than might be expected.” The report predicts that demand and supply are likely to remain balanced throughout 2020, with both dropping to five-year lows. The lower volumes are largely attributed to COVID-19 closures and restrictions in South Africa, the largest producer of the metal; at the time of publication, mines were only permitted QUICK NUMBERS Notable Trends 20% increase in palladium price per ounce, 18 March – 30 May 2020 247,000 predicted global platinum surplus in ounces for 2020 Source: World Platinum Investment Council 50% capacity of South African gold, platinum and palladium mines under COVID-19 restrictions 7% decrease in silver jewellery fabrication throughout 2020 Source: The Silver Institute to operate at 50 per cent capacity. South Africa is also also a key producer of gold and, notably, palladium, alongside Russia. Russian palladium mines have been largely unaffected by the pandemic. The world’s largest palladium producer, Nornickel, has not changed its 2020 guidance, with operations chief Sergey Dyachenko saying, “We expect saleable metal production volumes to recover during the rest of this year.” Refined strategy With precious metal prices remaining high and jewellery demand subdued, jewellers have an opportunity to create liquidity through refining. “This period of strong precious metal pricing and difficult trading is an opportunity for jewellers to manage any precious metal stock, in either finished or unfinished form, through refining... It is possible that precious metal value alone will return more than the original purchase price of the product” Peter Beck, Peter W Beck “In terms of normal working stock, having stuff just sitting around – especially if you’re paying lease costs on it – is relatively expensive. “So having it refined and turning it into cash, so that you can recycle that cash into additional manufacturing stock, would tend to make a lot of sense at this stage,” says Hayes. At Chemgold, Sher observed that when COVID-19 restrictions came into 30 | June 2020
Peter W Beck has been passionately committed to the jewellery industry for 45 years. Please be assured that we are still here and we will continue to provide you with the world class products and services that you rely on. We stand beside you through this tough time and beyond. OUR TEAM IS HERE TO SUPPORT YOU: Toll Free 1800 888 585 | Email customerservice@pwbeck.com.au 14 Duncan Court, Ottoway Park, SA, 5013 Australia Toll Free 1800 888 585 | Email customerservice@pwbeck.com.au | Web www.pwbeck.com.au
Page 1 and 2: VOICE OF THE AUSTRALIAN JEWELLERY I
Page 4 and 5: # 1 in Australia #3 in the World Je
Page 6 and 7: S A MS GR O UP A U STRA L I A WE’
Page 8: Upfront #Instagram hashtags to foll
Page 11 and 12: Let’s Talk It’s always importan
Page 14: News Michael Hill reopens 125 store
Page 18 and 19: News In Brief Diamond industry orga
Page 20 and 21: Created by members, for members. SH
Page 22 and 23: 10 Years Ago Time Machine: May 2010
Page 24 and 25: INSIDE My Store Sheila Fleet Jewell
Page 26 and 27: Ready Get Polish your gemstone know
Page 28 and 29: FEATURE Refining Stock LIQUID GOLD:
Page 32 and 33: REFINING FEATURE | Liquid Gold effe
Page 34 and 35: FEATURE Trade Fair Exclusive THE CU
Page 36 and 37: THE CURRENT STATE OF AFFAIRS | Trad
Page 38 and 39: THE CURRENT STATE OF AFFAIRS | Trad
Page 40 and 41: BEST OF BUSINESS Feature ‘ONCE UP
Page 42 and 43: Be Reconnected UNITED | CONNECTED |
Page 44 and 45: BEST OF BUSINESS Selling Want to sh
Page 46 and 47: BUSINESS Management Now, more than
Page 48 and 49: BEST OF BUSINESS Marketing & PR How
Page 50 and 51: BEST OF BUSINESS Logged On Sharpen
Page 52: My Bench Richelle Perks Stephen Dib
Page 56 and 57: SAMS GROUP SAMS GROUP SAMS GROUP AU

Jeweller - June, Edition I 2020

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?