1 November 2020: China’s renewed appetite for platinum jewellery enhances global market rebound: The global platinum jewellery market has seen a dramatic 32% rebound in the second half of 2020, after a COVID-19 impacted first half. Volumes rose 27% quarter-on-quarter to 498 koz in the third quarter, close to pre-pandemic quarterly levels. Key to the rebound in the fortunes of the platinum jewellery market is China, where jewellery demand grew 14% year-on-year in the third quarter and is expected to grow 10% year-on-year during the seasonally strong fourth quarter. Gold has traded at an average premium of c.$975/oz to platinum since March, compared to c$530/oz in 2019. This relative pricing increases retailer interest in stocking platinum jewellery compared to gold jewellery as it reduces cash flow requirements. A rising platinum price, that benefits manufacturer and retailer margins, with a continued wide discount to gold, represents a highly conducive environment to drive continued platinum jewellery demand growth in 2021.
Platinum Perspectives
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