Platinum demand up by 29% in Apr-June qtr

Chennai: Rising gold prices, resulting in a widening gap between gold and platinum prices, is pushing young turks into preferring white metal over yellow. Demand for platinum jewellery has risen 29% in April-June quarter and the industry is forecasting a growth north of 25% for the remaining period. On the other hand, even as demand for gold jewellery rose by 13% during the
quarter, June onwards, the demand fell, WGC added.

“The last quarter has seen sales from our strategic partner (jewellers) at 29% growth. And we expect platinum jewellery demand to grow by 25%-30% this year. The differential pricing of gold and platinum have aided in converting this audience’s desire into retail sales. We feel that this is an opportunity for the platinum market,” said Vaishali Banerjee, MD, Platinum Guild India.

As of Thursday 1 gram of platinum is at Rs 2,662, compared to Rs 3,660 (for 22 carat in Chennai) and the gap between gold and platinum prices is widening, thereby increasing demand. Since
April, platinum has gone up by 3%. On the other hand, gold prices have seen an 12% rise, at the back of aggressive central bank buying and global trade wars. The white metal is now over 27%
less expensive than gold. Data from the Gems and Jewellery Export Promotion Council shows that platinum imports have increased by 150% in April-July y-o-y. It has risen from Rs 131 crore
(by value) to Rs 340 crore.

N Ananthapadmabhan, MD, NAC jewellers said that demand for platinum jewelry has risen nearly 30% partially attributable to the increase in gold prices. “While the demand for gold has not been dented much, gifting and purchases made for ornamental purposes is seeing a shift to platinum. Majority of the high-ticket purchases are made by men – who buy thicker, heavier bands and chains,” he said.

Courtesy: TOI