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Palladium - A New Opportunity. 4 th September 2006. Presented by Michael Allchin Chief Executive & Assay Master . Palladium. Palladium presents a new opportunity for retail jewellers, providing a less expensive, high margin product to exploit the continuing popularity of white metal
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Palladium - A New Opportunity 4th September 2006
Palladium • Palladium presents a new opportunity for retail jewellers, providing a less expensive, high margin product to exploit the continuing popularity of white metal • The seminar covers the physical and commercial benefits of Palladium, plus up to the minute information about legislation and hallmarking requirements
A New Opportunity – Palladium • A new business opportunity has arrived– Palladium Jewellery • 22 tonnes of palladium jewellery were made in China last year alone • Palladium generated huge interest at USA Trade Shows in 2006
UK Manufacturers • The Assay Office knows from enquiries that there is interest in UK • UK Manufacturers beginning to experiment • Some designers already offering Palladium • Some here at the Show • High Street Jewellers already stocking it
What is Palladium? • Palladium is a platinum group metal which is white, light, workable and relatively inexpensive • See its position on the Periodic Table
The White Metal Look • White metal look has been popular for several years • Contemporary feel exploited by designers and trend setters • Every jeweller is offering something in platinum, white gold and silver
Currently threeWhite Precious Metal options • White Metal articles hallmarked in UK in 2005 • Silver 9 million articles • White Gold Approx 3 million articles?? • Platinum 325,000 articles
None of the current threeWhite Precious Metal options are ideal: • Silver: • Low intrinsic value • Does not have sufficient status to be used for significant items such as a diamond engagement ring • Tendency to tarnish detracts from its popularity
None of the current threeWhite Precious Metal options are ideal: • White Gold: • Popular but become more expensive alloy since Nickel Directive restricted use of its cheapest bleaching ingredient • Many white gold alloys require rhodium plating to give them premium white look • Plating can lead to customer dissatisfaction long term when plating inevitably wears off
None of the current threeWhite Precious Metal options are ideal: • Platinum: • No problems with regard to tarnishing or plating • Price and density make it an extremely expensive material to work with and platinum jewellery sales will always be restricted to the top end of the market. • Compare this with Physical Properties of Palladium
Rings courtesy of Domino 950 Pt 8.94gms £177 750 Au 6.83gms £60 950 Pd 5.07gms £28 Can you tell the Difference?
High Margin • Potential for high margin • Lower cost, high perceived value because of size/density ratio • Not widely available yet, less competition • Clearly a viable option commercially
Casting Palladium • Ask an expert, Martyn Pugh, Tony Shellman, Domino, • Dippal Manchanda, Birmingham Assay Office • High melting point +1350°C. Treat like platinum not gold • Use carbon free crucibles. Pd and C can cause hard carbide formation and generation of CO and CO2 • Use argon atmosphere. Palladium sucks up Hydrogen and • Oxygen like a sponge • Do not overheat the alloy when casting. It will absorb gas and grow, and come out like Swiss Cheese • Gas absorption means 950 Pd alloys best cast using induction heating to allow for argon gas cover
Soldering Palladium • Ask an expert, Martyn Pugh, Tony Shellman, Domino, • Dippal Manchanda, Birmingham Assay Office • Use protective eye-wear because of high temperature involved • When soldering 950 Palladium, flux not needed. Soldering temperature too high • Use standard platinum techniques but take extra care because of gas absorption • Step solders are available that work well on Au, Pd, Ag systems • When soldering Pd to carat gold use the carat gold solder; • Pd solders won’t melt first; the gold will! • Use a flux to keep the carat gold clean
Welding Palladium • Ask an expert, Martyn Pugh, Tony Shellman, Domino, • Dippal Manchanda, Birmingham Assay Office • Welding palladium alloys is not recommended • Tendency to absorb gas when liquid makes it difficult to get a porosity free join. • (But it can be done!) • Laser welding is good for casting repair work, use an argon atmosphere in the chamber
Does the Customer want it? • Yes - After the look and value for money • But - Want to know what they are buying
Consumer Protection • Not a well known metal • Visual inspection alone will not determine whether an item is Platinum or Palladium • Given the huge price differential it is essential that both jewellers and consumers know what they are buying
Control of Fineness • Recognised fineness standards for Palladium • Most common 950 mark already exists in Switzerland • No legal hallmark in the UK • Advent of Palladium does bring the need for control • Need to ensure that everyone is competing on a level playing field • Asymmetric information - trade knows a lot; consumer knows nothing; need for regulation
Credibility • Need to ensure that this trendy “new” metal retains its credibility, its high status as a Platinum group metal, and its saleability • The Assay Offices of Great Britain are progressing the development of an accepted mark through the DTi
Designing Palladium • Appropriate designs, traditional vs contemporary • Understand manufacturing properties • Opportunity for high fashion in precious metal because cheaper
Designer Palladium • Palladium Pendant by Martyn Pugh
Staff Training essential • Need to ”sell” it to staff first • High level staff training required
Thank You! • Thank you to the experts who have contributed to this presentation and particularly to Martyn Pugh and Domino for their cooperation • Thank you to you for coming along and listening • Are there any questions?
