Platinum Demand Rises by 80% in China
Source: Commodity Online (10/1/09)
"This market response highlight. . .the different nature of Chinese platinum jewelry demand"
According to a new study, platinum jewelry demand in China is continuing to skyrocket.
Shanghai Gold Exchange found that the total volume of platinum bought by Chinese consumers in the first half of 2009 rose by 81% on a year-on-year basis.
This market response highlights the strength of platinum jewelry branding and the different nature of Chinese platinum jewelry demand, as economic conditions continue to depress jewelry sales in most western markets.
The Chinese market is unsaturated and the number of retail outlets continues to grow. In an earlier report, the vast majority of the rise in platinum consumption was accounted for by the jewelry sector, which was estimated to have been gone up more 400,000 oz compared to H1 2008.
The upsurge can be explained by factors such as the Chinese New Year, Valentine's Day and the May holiday, while 2009 is an auspicious year for marriage in the country.
China has been the world’s largest platinum jewelry market for the past nine years and the Shanghai Gold Exchange findings were supported by a similar survey last year.
Leading research agency Millward Brown polled 1,000 high-earning Chinese females aged between 20 and 40 in five major cities about their preferences in relation to jewelry.
The results showed that 40% believe platinum pieces are the most refined on offer, while over 50% revealed that platinum is their favorite precious metal.
Platinum prices have held steady to date, providing an opportunity for further growth in platinum jewelry demand.