India's Platinum Jewellery demand zooms 40-50%

Author: Paul Ploumis
24 Mar 2015 Last updated at 09:06:59 GMT

NEW DELHI (Scrap Monster): The demand for Platinum jewellery in India surged nearly 40-50% during February to March period. Industry sources indicate that the trend is likely to sustain during the upcoming festive season.

The huge rise in demand for Platinum jewellery is based on two important factors.

Firstly, the platinum wedding jewellery collection launched by Platinum Guild India under the name “Evara” has emerged as a popular choice among urban youth. Ever since its launch in November last year, the branded platinum jewellery has reported tremendous sales growth. The brand has also helped Platinum to expand its base by breaking out of its traditional demand sectors such as love bands and rings. Platinum has gained popularity among young male population as an alternative to shining yellow metal. It offers more choice to experiment with new and distinct styles.

The second obvious reason for driving platinum demand in the country is the sharp drop in prices. In fact, platinum has now become cheaper than gold. Currently, platinum prices are trading lower at Rs. 2630 per gram, when matched with the gold prices at Rs 2,660 per gram. The price of platinum in international market is much lower at $ 1,150 per Oz as against the gold prices at $1,183 per Oz. According to jewellers, the price crunch has boosted sales of platinum jewellery in the country during the past two months.

As per statistics released by the World Platinum Investment Council (WPIC), the demand for platinum jewellery in the country had reported a growth of nearly 25% from 140 koz in 2013 to 175 koz during 2014. WPIC had predicted the demand to rise by another 15% during 2015 to touch 200 koz.