A prominent jewellery retailer in Beijing has started offering platinum investment bars, following the launch of platinum bar sales on TikTok by a partner of the World Platinum Investment Council (WPIC).
Platinum bar sales in China have surged, with purchases of platinum bars under 500 grams increasing by 140% year-on-year to reach a record 31,000 ounces. In total, first-quarter demand for platinum bars and coins rose by 17%, hitting 70,000 ounces.
The demand for platinum jewellery also grew in the first quarter, rising by 9% to 533,000 ounces. This increase is part of a larger trend where many jewellery stores in China are now offering platinum as an investment product.
Platinum investment demand overall rose by 28% in the first quarter, reaching 461,000 ounces. The upcoming Shanghai Platinum Week, scheduled for the second week of July, is expected to further boost platinum demand in the region.
With the high price of gold, investors are increasingly turning to platinum as a store of value. Full-year bar and coin investment is predicted to grow by 30% to 252,000 ounces, driven by a 48% increase in China and an 18% growth in North America. Additionally, platinum bar purchases of 500 grams or more in China are expected to grow by 15%, reaching 186,000 ounces.
Despite challenges such as capacity constraints and rising competition, WPIC partners have achieved record-breaking sales, thanks in part to the surge in platinum jewellery demand in China.
In the first quarter, global platinum demand rose by 10% to 2.27 million ounces, with a sharp increase in exchange-held platinum stocks. Green hydrogen demand, which grew by 159% in the first quarter, is also expected to rise by 35% for the full year to 59,000 ounces.
On the supply side, platinum mining fell by 13% year-on-year in the first quarter to 1.09 million ounces, marking the lowest level since the second quarter of 2020. This resulted in a first-quarter supply deficit of 816,000 ounces, the largest in six years.
WPIC experts predict that this supply deficit is likely to continue, with potential future deficits expected due to structural factors in the market.
Platinum’s diversity of uses—spanning automotive, industrial, jewellery, and investment sectors—has helped it remain resilient. Despite supply challenges, platinum continues to play a crucial role in several industries. The strategic importance of platinum to the US automotive industry, in particular, has helped protect the metal from US tariffs. The overall impact of trade restrictions is unlikely to significantly reduce the projected 966,000-ounce platinum deficit for 2025.
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