However, widely fluctuating platinum prices gave China’s platinum jewelry market unprecedented challenges in 2008.
In the first half of the year, high prices drove manufacturers to be very cautious in procurement and led them to optimize their inventory management systems. Manufacturers made more efforts to recycle platinum to reduce risks, while high platinum prices also depressed platinum jewelry sales.
However, with platinum prices falling in the second half of 2008 and along with proactive domestic fiscal policies, the platinum market is expected to see new opportunities in 2009, said Platinum Guild International (PGI), a global organization dedicated to promoting platinum jewelry.
According to statistics from the Shanghai Gold Exchange, platinum purchases increased 16 percent year-on-year in 2008. partly due to the fall in global platinum prices and consequently the fall in the retail price of platinum jewelry.
According to the latest statistics released by PGI, retail sales for the first three days of 2009 rose 13 percent year-on-year, showing that the government’s efforts to spur domestic demand and prevent an economic slowdown are yielding results.
In addition, Oracle Added Value, a leading marketing research and consulting firm in China, said in its survey, that platinum jewelry retains its dominance in the wedding market with 75 percent of brides and 68 percent of grooms interviewed saying they had chosen platinum wedding rings.
« In 2009, with a more stable market price, a booming wedding market and the orchestrated efforts of the industry, we are confident of the future development of the platinum jewelry industry in China. » said Grace Man, director of PGI China.
China is the world’s biggest producer and the second-largest consumer after India, of another precious metal – gold. The estimated annual consumption is about 360 tons.
Source : Konaxis
