According to the second annual Retail Barometer report released by Platinum Guild International (PGI), retailers anticipate that demand for platinum jewellery – which was measured in terms of the weight of platinum jewellery sold at retail level – will increase 2.3 per cent this year compared to the 2.77 million ounces sold in 2014.
The findings were based on a jewellery retail survey conducted between January and February 2015 across what PGI described as the four main platinum markets – China, India, Japan and the US.
India was predicted to achieve the highest increase in demand, with platinum retail sales in ounces expected to rise 23 per cent in 2015. The report also indicated that retail sales would increase in the US and Japan by 7 per cent and 1 per cent respectively, while the Chinese market was expected to remain “flat”.
“Continued growth in the platinum jewellery market is important, as the jewellery category represents 35 per cent of all global demand for platinum,” PGI CEO Huw Daniel commented. “2015 is expected to deliver higher growth and clearly there are concerns about the Chinese market, but PGI have plans in place this year to address the challenges and to capitalise on the latent demand. India is very exciting and PGI is bullish about the prospects there…”
Although the report did not specifically address the Australian market, outgoing PGI CEO James Courage told Jeweller that the figures presented an opportunity for local retailers to increase sales.
He added that platinum hallmarking figures had performed “strongly” in the first quarter of 2015, with the number of units sold rising 8.8 per cent compared to the previous corresponding period.
“Whilst this [result] may not be a direct indicator for your markets [Australia and New Zealand] it does reflect the possible effect of the weaker platinum prices in recent months, with platinum metal prices being below gold since mid-January,” Courage said.
“Platinum’s strong association with bridal rings also tends to retailers adding to their platinum mix as prices soften. Under current conditions, platinum prices look unlikely to raise significantly, so the current trend may well prevail if the price relationship with gold remains similar.”
The report also detailed the performance of the main platinum markets in 2014. Platinum retail sales in ounces increased 28 per cent in India, 8 per cent in the US and 3 per cent in Japan. However, sales in China – the largest retail market for platinum, representing 69 per cent of global sales – decreased 3 per cent. This was attributed to the country’s economic slowdown.
PGI is a global marketing organisation, funded by a number of South African platinum producers and refiners, that aims to expand and strengthen the consumer and trade markets for platinum jewellery.
The latest Retail Barometer report involved a survey of more than 400 jewellery retailers representing almost 40,00 retail outlets. It was conducted by independent platinum market specialists and industry analysts.
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