India’s demand boost to drive global platinum sales: PGI

Author: Paul Ploumis
14 Apr 2015 Last updated at 07:52:16 GMT
NEW DELHI (Scrap Monster): The most recent statistics released by the Platinum Guild international (PGI) suggests that platinum sales recorded robust year-on-year growth of 28% during 2014. Among key markets, only India reported double digit growth, whereas the US and Japan managed only single digit growth. Furthermore, PGI forecasts that India will continue to remain as the world’s fastest growing platinum market.

The country’s platinum jewellery demand has risen sharply over the years. The platinum jewellery sale in India has grown at a compounded annual rate of 80% over the past two years. There has been a phenomenal rise in the number of retail outlets selling platinum jewellery in the country. PGI predicts three-fold rise in the number of stores from 358 in 2009 to 1,100 by end-2015. The number of stores has already doubled in the past five years, it noted. According to World Platinum Investment Council (WPIC), the country accounted for 38% of the global platinum demand in 2014.

The platinum wedding jewellery collections launched by PGI during November last year under the brand name ‘Evara’ has become immensely popular among Indian youth. This along with the mass media campaigns initiated by PGI has given a big push to platinum jewellery sales in the country. Also, sharp drop in platinum prices too boosted their sales. Retailers too have shown interest to promote platinum jewellery, as platinum offers a gross margin of 25% as compared with 10% offered by gold.

India’s platinum jewellery demand surged almost 25% in 2014 to 175 koz when compared with the total demand of 140 koz in 2013. As platinum jewellery makes more inroads into Indian market, the jewellery demand is likely to surpass 200 koz in 2015. PGI expects the scope of platinum to develop further in the coming years.