In the run-up to the 2018 CIBJO Congress, to be held in Bogotá, Colombia, on October 15, 2018, CIBJO has released the second of the CIBJO commissions' Special Reports, this one prepared by the CIBJO Precious Metals Commission.

The report will form the basis for discussions at the Congress of the Precious Metals Commission, which is headed by Huw Daniel. It examines the influence on the sector by outside forces, be they political, regulatory or the result of decisions by the International Standards Organisation.

"Unlike diamonds and other gemstones, where prices are almost exclusively a function of supply and demand in the jewellery markets, precious metals are also safe haven assets, and as such are subject to forces that simultaneously are driven by both psychology and economics," Huw, who has authored the report, writes.

The document specifically looks at the difficulties encountered in predicting the trajectory of precious metals’ prices because they tend to be influenced by outside political events. It draws attention to the wide variations in predictions by analysts regarding price movements for gold, silver and platinum in 2018, and says that this creates its own set of challenges for jewellers. 

Changes in the recently released Guides for the Jewelry, Precious Metals, and Pewter Industries by the U.S. Federal Trade Commission are also discussed, with the report pointing out that the changes related to precious metals are “less controversial” than those related to diamonds. These are predominantly concerned with precious metals surface layers, precious metal minimum thresholds and the procedure for describing products containing more than one precious metal.

The report also recounts a successful effort undertaken by CIBJO, the Platinum Guild International and other industry bodies to reverse a 2014 decision by the International Standards Organisation.

"The process underlined the very valuable role that CIBJO can take as an official observer at ISO, working in concert with leading industry associations," writes Huw. "Its position is greatly enhanced because it is seen as being non-partisan, with its primary goal being to defend the interests of consumers."