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 industry is forecasting a growth north of 25% for teh remianing period. On the other hadn, 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,” Vaishali Banerjee, MD, Platinum Guild India (PGI).
As of Thursday 1 gram of platinum is a Rs 2,662, compared to Rs 3,660 (for 22 carat in Chennai) and the gap between gold and platinum prices is widening, threby increasing demand. Since April, platinum has gone up by 3 per cent. On the other hand, gold prices have seen an 12 per cent rise, at the back of aggressive central bank buying and global trade wars. The white metail is now over 27 per cent less expensive than gold. Data from GJEPC council shows that platinum imports have increased by 150 per cent in April-July y-o-y. It has risesn from Rs 131 crore (by value), to Rs 340 crore.
N Ananthapadmanabhan, MD, NAC jewellers said that the demand for platinum jewellery has rises nearly 30 per cent partially attributable to the increase in gold prices. “While the emand for gold has not been dented much, gifting and purchases made for ornamental purposes is seeing a shift to platinum. Majoriy of the high-ticket purchases are made by men-who buy thicker, heavier bands and chains,” he said.
Courtesy - TOI
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