Q2 2024 Platinum Jewellery Business Review Results Reinforce the Value of Platinum
(26 September, Hong Kong) – Platinum jewellery remains a growing opportunity, according to the Q2 2024 Platinum Jewellery Business Review. As current high prices slashed gold jewellery demand, marketing initiatives rooted in platinum’s unique qualities have drawn new buyers to this naturally white, rare and durable precious metal.
Platinum Woman 2024 Collection
“Platinum means quality and understated luxury. Discerning shoppers understand the value and attributes of platinum compared to gold,” explains Tim Schlick, CEO of Platinum Guild International (PGI), “With the price of gold fluctuating at record highs and more diversified platinum offerings, jewellers are turning to platinum once again. PGI’s marketing efforts on the ground in different countries also help build an understanding of and appreciation for this premium metal among jewellery lovers.”
Findings by Key Markets
China
Platinum jewellery outperformed gold in the second quarter in China, as some retailers and wholesalers have started to shift their focus to platinum, while more manufacturers are rebuilding their platinum inventory. Platinum jewellery fabrication improved in the second quarter, led by the metal-only products that dominate the Chinese market, which delivered year-
over-year growth in May and June. Meanwhile, platinum jewellery sales among PGI’s retail partners declined at a much slower pace than in the first quarter.
India
The Indian jewellery market in April and May was almost stagnant due to general elections, record high temperatures and rising gold prices, which led to dampening demand. However, platinum demand shot back up in June when they saw double-digit year-over-year growth, helped by marketing initiatives like the Men of Platinum campaign during the Indian Premier League and the ICC T20 Cricket World Cup. PGI India is also expanding Platinum Love Bands and Men of Platinum to the Middle East by partnering with key retail partners to explore opportunities in countries such as the United Arab Emirates, seeing a positive response.
Japan
Jewellery sales in Japan increased for the thirteenth consecutive quarter in the second quarter, including platinum jewellery, where sales increased at 0.8% YoY on a unit basis. Demand among Japanese customers remained strong, while foreign visitors also helped. Platinum sales growth was led by high-purity Pt950 products in the form of Kihei, pendants and necklaces, whilst gold jewellery grew the most in low-purity products (10kt and lower). The PGI flagship brand, Platinum Woman, saw unit sales increase by over 40% YoY during the first half.
United States
Platinum is generating substantial interest in the US when compared with the soaring price of gold and declining prices (and margins) of diamonds, both from independent retailers as well as major chains. Platinum jewellery sales from PGI’s strategic partners increased at 6.8% YoY in the second quarter, and four jewellers of the Platinum Business Development Grants all delivered double-digit sales growth. PGI USA’s new Inoveo platinum alloy had a promising debut in June, given characteristics that make it as user-friendly as gold with all the benefits of platinum. It is intended to inspire new manufacturers to work with platinum while motivating existing players to increase their platinum production.