Gold Silver Reports — Demand for platinum will remain robust in India in the second half of 2016 as preference for the metal grows among young consumers amid a 10-12% price differential with gold, according to Huw Daniel, CEO of Londonbased Platinum Guild International .
Platinum Demand Up
Platinum imports for jewellery are expected to go up 25% this year to touch 8.3 tonne .
As against this, platinum demand in China, which has surpassed India in gold consumption, is not likely see any growth in the second half of the year, though the 3-4% fall in demand seen in the first half could be arrested, Daniel told ET over the phone from Mumbai .
China is the world’s largest consumer of platinum jewellery , accounting for 65% of the total world consumption .
Platinum prices are now at their decade’s low and the spread between gold and platinum prices has created a buying opportunity for consumers as well as margin opportunities for retailers .
On Tuesday , platinum was selling at `28,000 per 10 gm, while gold was at `31,000 per 10 gm. Gold has gained about 25% since the beginning of this year .
“Price is a major factor among youths who want to own platinum,“ said Kalpanik Choksi, director, Ishwarlal Harjivandas Jewellers. “This is driving the growth of platinum. Secondly, the bridal line of platinum jewellery Evara which was earlier available at `4 lakh, is now available at `2 lakh. This has become popular among young brides . “
Platinum jewellery witnessed a mixed trend in global markets in the first half of 2016. In the second half, sales growth will be restrict ed to 8% in the US as against 10% in the first half, while Japan will be able to maintain sales growth at 3-4% .
In India, platinum jewellery grew 16% in the first half as a 42day strike called by jewellery makers against imposition of a 1% excise duty on gold and diamond jewellery affected sales.But in the second half, platinum jewellery sales will grow at least 40%, Platinum Guild International said. Last year, platinum jewellery sales grew 24%. Of this, 53% was dominated by studded platinum jewellery .
Daniel said India is an interesting market for them and Platinum Guild International is working out marketing plans for the next 5-10 to reach out to young Indians . — Neal Bhai Reports