Poor platinum.

With the spot price of gold exceeding platinum in recent weeks (www.kitco.com) , platinum appears to be in the doldrums. It’s not the first time this rare natural white metal has faced a tough challenge.

Though platinum jewelry has been around since ancient times, it began to be widely used in jewelry about 200 years ago. At first it didn’t pass muster on its own; “platinum over gold” was preferred. Look closely at this ring, an example from our own inventory. The shank is yellow gold. If you turn it over, you’d see that the platinum overlay into which the diamonds are set is actually quite thin.

Platinum is overlaid atop gold in this antique diamond ring.

By the 1910′s platinum had gained traction with the fashion conscious, just in time to be struck down by WWI.

Platinum was declared a strategic metal, probably because early internal combustion engines used a heated platinum tube for ignition.

With a gap in the marketplace, a stable attractive white gold alloy was developed. You can look like an expert if you wander into a jeweler and remark, “Ah yes, this ring is crafted in white gold. It was made after 1914.”

Since the introduction of less expensive white gold, the popularity of platinum as a jewelry metal has waxed and waned. In the early 1990′s, an international consortium of miners and refiners was formed to promote platinum: its use in catalytic converters was waning and the industry was attempting to expand their market.

The Platinum Guild offered incentives and advertising for platinum jewelry designers. They sponsored magazine ads and published an annual ‘drool book’ of fine designs that featured the best artisans of the era. I treasure these volumes, though they have not been published in years. Next time you stop by, I’ll show you an issue or two.

Platinum is the standard precious metal for bridal jewelry, due in no small part to this proactive marketing effort.

Still, white gold has maintained a following. These days it’s rare for a jeweler to hear a bride announce a preference for yellow gold. The choice is between white metals, not between yellow gold and platinum.

At the dawn of 2012, with the spot price of platinum below that of gold, platinum jewelry is still more expensive than the same ring, earring, necklace, timepiece, chain or bracelet in white gold.

When I called a few metals brokers to buy 10 oz. of platinum for a client, I was told to “forget about it”…well, forget about buying physical “hold in your hand” platinum at a price anywhere near the advertised contract spot price. It’s normal for precious metals to be traded above ‘spot’ for physical delivery, but no one I talked to had any platinum to sell at under $1750/oz (spot was just over $1435).  The reason for this huge gap is the subject of another blog post–one that has more to do with global economics than ring fingers–but suffice it to say that, in significant quantities, platinum is still mighty pricey.

Platinum is not only much more rare than gold, it’s also more difficult to work with. Its melting temperature is nearly twice that of gold, and platinum is sometimes loathe to take a nice polish. Casting platinum requires special care and equipment.

When I look at a website that most jewelers use, www.Stuller.com, my cost for a nice stout white gold solitaire is $197, the same model in platinum is $472.

White metal is great for diamonds: the cool color can enhance a diamond’s sparkle, make it look larger and even offer enhanced protection.

Which white metal is better for jewelry, white gold or platinum? Is the newcomer, palladium, a real contender to be “the other white metal”?

The answer depends on the jewelry…and the wearer. I’ll explain in my next post.