Last Updated :
26 October 2009 at 17:05 IST
Platinum demand soars in China
BEIJING (Commodity Online): In China platinum is taking big strides with the demand for the metal rising even in remote areas.
Higher sales are being fueled by holiday-related jewellery sales and for bridal rings, which were helped by 2009 being considered an auspicious year for getting married and an increasing desire for platinum.
Platinum jewellery sales in China increased by more than 400,000 ounces, compared to the same period in 2008, largely in response to lower platinum prices, but also given the reduced premium over gold.
This market response highlights the strength of platinum jewellery branding and the different nature of Chinese platinum jewellery demands, as economic conditions continue to depress jewellery sales in most Western markets. The Chinese market is unsaturated, and the number of retail outlets continues to grow.
The strong growth in platinum jewellery demand is supported by statistics published by the Shanghai Gold Exchange, which show that the total volume of platinum sold in the first half of the year was up 81 percent over the same period last year. The majority of the sales were in the jewelry category.
Platinum prices have held steady to date, providing an opportunity for further growth in platinum jewellery demand.
Increased sales have been helped additionally by new store openings and manufacturers holding larger working stocks to meet increased demand.
The second half of 2009 is expected to deliver higher levels of spending, including increases in gift jewelry and bridal jewelry purchases.
Chinese people see 2009 as an auspicious year for marriage, since the number nine implies forever love.
It is estimated that more than 10 million couples tie the knot each year in China. According to China Wedding Registry, 10.5 million couples registered their marriage in 2008, a 10.6 per cent increase in year-on-year growth.
It is estimated that marriages will see 6 per cent growth to 11.5 million marriages in 2009, and that marriages will number 11.82 million in 2010.
Since 2000, China has been the world’s largest consumer market for platinum jewellery. Sales increases were reported to be strong in both first- and second-tier cities.
Festive occasions have become major drivers of sales for consumer products, and jewellery is no exception.
NCDEX POTATOFAQJUN12 20 June 2012
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