Demand for platinum jewellery in China, which has dropped sharply over the past ten years, is now starting to rise again. This increase is helping to create a larger global shortage of platinum this year than experts had expected, the World Platinum Investment Council (WPIC) said on Monday.
In the first quarter, the amount of platinum jewellery made in China grew by 26% compared to the same period last year. This growth was helped by platinum being cheaper than gold. Gold prices have risen 21% this year after a 27% increase in 2024. Platinum prices, after falling for two years, are up 9% this year.
The WPIC, which uses data from the consultancy Metals Focus, explained in a quarterly report that rising gold prices and weaker gold jewellery sales led wholesalers and local retailers to sell off unsold gold and buy more platinum instead.
The council expects platinum jewellery demand in China to grow by 15% this year, reaching 474,000 troy ounces. However, this is still much lower than the peak demand in China, which was 2 million ounces in 2014. After that year, demand fell as lower platinum prices discouraged buyers.
Globally, the WPIC predicts that demand for platinum jewellery will rise by 5% to 2.1 million ounces in 2025. However, this increase will not make up for losses in other areas. Platinum use in the auto industry is expected to drop by 2%, and demand from other industries, like chemical and glass manufacturing, will fall by 15%. These declines will lead to an overall 4% decrease in global platinum demand, down to 8 million ounces this year.
At the same time, total platinum supply will fall by 4% to 7 million ounces. This is the lowest level in five years and is mainly due to reduced mining output in all major producing regions except Russia.
Because of these changes, the WPIC now forecasts a market shortage of 966,000 ounces this year. This is higher than the 848,000-ounce deficit predicted two months ago.
To balance this shortage, existing stocks of platinum held above ground will decrease by 31%, dropping to 2.2 million ounces. This amount is equal to about three months of global demand.
Related topics:
- Northern America’s Imitation Jewelry Market to Experience Moderate Growth Through 2035
- Bvlgari Fashion Empire Reconnects with Its Origins in Epirus, Greece
- Tiffany Unveils New Solar-Powered Diamond Watch Combining Technology and Heritage
