The interest in platinum jewellery remains lackluster in Asia, despite the current rally in gold prices, leading to subdued consumption levels globally. Analysts highlight that while jewellery accounts for a significant portion of platinum demand, constituting 23% of total usage, its appeal has dwindled in recent years, notably in China where demand has plummeted by 79% since its peak in 2014.
The persistent price disparity between gold and platinum since 2015, with gold currently trading near record highs, along with elevated metal inventories in the automotive sector, has further dampened the prospects for platinum jewellery. Nicky Shiels from MKS PAMP SA underscores the substantial impact of the decline in Chinese platinum jewellery demand on overall platinum prices, citing factors such as low economic growth and subdued consumer sentiment in the region.
In 2023, China relinquished its leading position in the platinum jewellery market to North America, with the United States witnessing a significant surge in demand over the past decade. However, this growth has not been sufficient to offset the declines experienced in China.
While North America shows promise for further growth in platinum jewellery consumption, India is also witnessing an increase in demand from a low base. Nevertheless, consumer confidence remains uncertain in India, with gold continuing to overshadow platinum as a preferred choice for jewellery due to its perceived store of value and liquidity.
The shift away from platinum towards gold jewellery is evident in Asian markets, with consumers like Linda Liu from Beijing expressing a preference for gold due to familiarity and trust in its value retention. Despite efforts to promote platinum jewellery by industry organizations like the Platinum Guild International, the enduring appeal and practicality of gold as an investment and adornment continue to overshadow platinum’s allure in the region.