Chinese jewelers boost platinum demand amid slumping gold sales. Record high gold prices have driven a 27% decline in Chinese gold jewelry sales, prompting a shift towards the more affordable platinum. This surge in platinum imports, reaching a one-year high in April, is driving global platinum prices up 40%. The price advantage and weight-based pricing in China make platinum a compelling alternative for the price-sensitive market
Record-high gold prices, exceeding $3,500 per ounce in April, curb even China's strong gold demand, impacting jewelry sales. This surge in gold prices has driven Chinese consumers, known for their cultural affinity for gold, to explore alternative precious metals for jewelry
China's gold jewelry sales plummeted 27% in Q1 2024, reaching 134.5 tons, according to the China Gold Association. Record-high gold prices, exceeding $3,500 per ounce in April, significantly impacted consumer demand, prompting a shift towards more affordable alternatives like platinum
Despite a 27% drop in Chinese gold jewelry sales due to record-high gold prices, gold bar and coin investment surged nearly 30%. This demonstrates robust investor demand for safe haven assets like gold
Plummeting gold jewelry sales in China are driving jewelers to embrace platinum. Soaring gold prices, reaching record highs, have significantly impacted consumer demand. Facing a 27% drop in gold jewelry sales, manufacturers are seeking alternative precious metals for survival, with platinum emerging as a key contender due to its lower price point and strong investor interest. Increased Chinese platinum imports reflect this shift, boosting global platinum prices by approximately 40% this year
China's platinum imports surge to a one-year high of 11.5 metric tons in April, driven by strong jewelry demand. This increase reflects a shift away from gold, as high gold prices impact Chinese consumer spending. The rising platinum price, currently near $1,265 per ounce, is fueled by this increased demand, offering a more affordable alternative to gold in the price-sensitive Chinese market
Soaring gold prices, hitting record highs, have fueled a surge in platinum demand, particularly in China. This increased demand, driven by a slump in gold jewelry sales, has propelled platinum prices up approximately 40% year-to-date, reaching near $1,265 per ounce. Simultaneously, gold prices have also climbed roughly 30%. This makes platinum, currently priced at about one-third the cost of gold, an attractive alternative for the price-sensitive Chinese market
Platinum's rising popularity in China: With gold prices soaring, Chinese jewelers are turning to platinum. Priced significantly lower than gold (approximately one-third the cost), and sold by weight, platinum offers a compelling alternative for price-conscious Chinese consumers, driving record imports and boosting global platinum prices
Affordability is key in China's price-sensitive jewelry market, where high gold prices have impacted sales. Platinum, currently a third of gold's price, offers a compelling alternative for Chinese consumers, driving strong import demand and contributing to platinum's price surge
Platinum's recent price surge, nearing $1,265 per ounce, raises concerns. Goldman Sachs analysts question the rally's sustainability, citing price-sensitive Chinese demand, weakening auto sales, and stable platinum supply. While Chinese platinum imports hit a yearly high in April, fueled by slumping gold jewelry sales, this speculative demand may not provide long-term support for platinum prices
Platinum's price surge: Speculative investment and record-high gold prices drive demand, particularly in China where high gold costs are pushing jewelers towards platinum alternatives
Investor hesitation in the platinum market, despite its recent surge, stems from the belief that the initial gold price rally was missed, according to Goldman Sachs analysts. This follows record-high gold prices, impacting Chinese gold jewelry sales and driving increased platinum demand as a more affordable alternative
With gold prices at record highs, investors are turning to platinum for growth opportunities. High gold prices have dampened Chinese gold jewelry sales, driving jewelers to seek alternative precious metals. This shift in demand, coupled with speculative investment, is fueling a significant rise in platinum prices
World Platinum Investment Council (WPIC) boosts platinum's investment appeal, promoting its potential as a precious metal alternative to gold amidst surging gold prices and declining gold jewelry sales in China. This strategic marketing campaign highlights platinum's value and growth prospects, capitalizing on increased Chinese platinum imports and a price point significantly lower than gold
To combat falling gold jewelry sales, the World Platinum Investment Council is collaborating with Chinese jewelers. This partnership focuses on streamlining fabrication and market processes to make platinum jewelry more affordable for Chinese consumers, leveraging platinum's lower price compared to gold
Deng said it’s more expensive to work on platinum than gold as it requires more energy to melt the white metal. But reducing production costs is key to making platinum jewelry more accessible to consumers, he added.
Another challenge: The gold market is far more liquid. It’s easier for consumers to sell or trade in gold jewelry with a small discount.
WPIC is partnering with jewelers in China to develop similar resale channels for platinum pieces.
Platinum isn’t just for jewelry. It’s used in everything from car parts to electronics. That broad demand helps support its value.
But according to Deng, it’s platinum’s visibility in jewelry that plays a crucial role in how consumers perceive it as a precious metal.
“Gold and silver have long been seen as currencies and stores of value around the world. To make the platinum jewelry market sustainable, consumers need to view platinum the same way — as a store of value,” he said.
Deng acknowledged that gold is likely to remain the ultimate store of value in the eyes of the consumer, but even a small demand switch from gold to platinum would be significant.
The BofA analysts wrote last week that even a 1% switch in gold to platinum jewelry could help double the white metal’s supply deficit to 1.6 million ounces, which would help support prices.
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