Chinese demand for platinum jewellery surges (Weds, 30 Sept) Platinum jewellery demand in China is continuing to skyrocket, according to a new study released yesterday (29th September). The Shanghai Gold Exchange found that the total volume of platinum bought by Chinese consumers in the first half of 2009 rose by 81 per cent on a year-on-year basis. Neville Nicolau, Chief Executive of Anglo Platinum, which is the world's largest producer of the precious metal, explained that jewellery sales were the key to the leap. He told the body: "This market response highlights the strength of platinum jewellery branding and the different nature of Chinese platinum jewellery demand, 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." In a previous report Anglo reported that the vast majority of the rise in platinum consumption was accounted for by the jewellery sector, which they estimated had risen by 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 jewellery 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 jewellery. The results showed that 40 per cent believe platinum pieces are the most refined on offer, while over 50 per cent revealed that platinum is their favourite precious metal. "Platinum prices have held steady to date, providing an opportunity for further growth in platinum jewellery demand," added Platinum Guild International CEO James Courage. "Increased sales have been helped additionally by new store openings and manufacturers holding larger working stocks to meet increased demand." The Shanghai Gold Exchange revealed earlier this month that it expects platinum sales in China to increase by approximately 70 per cent this year.
PLA Price at posting:
$1.01 Sentiment: LT Buy Disclosure: Held
