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Michael Allchin Chief Executive and Assay Master The Birmingham Assay Office

Michael Allchin Chief Executive and Assay Master The Birmingham Assay Office . Unprecedented times. unprecedented consequences – an analysis of how rising precious metal prices have impacted on the UK jewellery industry  in 2011. Average Prices £/oz 2001-2010.

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Michael Allchin Chief Executive and Assay Master The Birmingham Assay Office

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  1. Michael AllchinChief Executive and Assay MasterThe Birmingham Assay Office

  2. Unprecedented times unprecedented consequences – an analysis of how rising precious metal prices have impacted on the UK jewellery industry  in 2011

  3. Average Prices £/oz 2001-2010

  4. Average Metal Prices £ per oz

  5. Average Gold price 1973 to 2010

  6. Diamond Prices – Antwerp Index

  7. Diamond Price Index to Sept 2011

  8. Price Index 2008 - 2011

  9. The four wedding rings - retail * 2005

  10. The Prawn Sandwich & the Gold Earring Was 99p Now £1.49 Was £ 9.99 Now £49.99

  11. Unprecedented Consequences

  12. Impact on UK Hallmarking Volumes

  13. Number of articles by metal

  14. Hallmarking Figures from 1975

  15. Gross weight of gold jewellery hallmarked

  16. Value at the time

  17. Jewellery & Watch market UK Retail Sales of Jewellery and Watches by sector Source: MINTEL

  18. Scrap Gold

  19. Gold Supply from old scrap (tonnes)

  20. Scrap Gold to June 30th 2011 • Global scrap supply dropped by 7.2% in the first half of 2011 = 752 tonnes • Drop mainly all accounted for by Turkey and India – elsewhere flat • Distress selling eased • Higher prices yet expected, waiting game • Europe 6% up in first half = 168 tonnes • But North slowing down and South increasing due to economic climate

  21. Global Scrap volumes 2008-2011

  22. Total weights and value at 2010 UK and Ireland scrap returns: 2008 = 38,700 kgs 2009 = 59,400 kgs 2010 = 69,800 kgs Three year total = 167,900 kgs = 14.5% of HM total Source: Thomson Reuter GFMS

  23. Consequences for Diamonds

  24. Diamonds – The Consequences • Higher prices = more temptation to cheat • Internet selling makes it easier; more reliance on certification • Rogue certificates muddying the waters • New laser and HPHT treatments difficult to detect • Small white synthetics not far away – parcel pollution inevitable • Integrity of the industry could be at risk

  25. Non Precious Metal Brands Stainless Steel & bead bracelet £50 Bracelet £149 Ernest Jones Men’s Tungsten & Silver Ring £115 Aagaard Help for Heroes Bracelet £79

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