According to the World Platinum Investment Council (WPIC), Platinum Quarterly for the Q3 2024; Global jewellery demand increased by 7% year-on-year to 478 koz in Q3’24 (+32 koz). Demand in Europe grew by a modest 3% year-on-year in Q3’24, although results varied considerably between sectors and countries.
On the one hand, the mass market and bridal remained disappointingly soft, due to cost-of-living issues (as illustrated by UK hallmarking falling by 1%). However, the luxury sector saw further gains, as suggested by Swiss platinum hallmarking being up 44% in Q3’24.
North American fabrication also rose by 3% in Q3’24, with support coming from the now familiar mix of widening price differentials to white gold and lower diamond prices (reducing the total price of gem set items). Cost-of-living issues are less of a feature at platinum’s price points in North America, although a soft engagement market was still apparent.
Q3’24 saw robust Japanese jewellery demand, which came at a stark contrast to the sharp drop we saw in gold jewellery fabrication. The exceptionally high gold price compared to what is perceived to be a reasonable or even attractive platinum one, has seen the white metal gain market share from gold in this segment.
The local gold price hit a new record in July whereas the platinum price spent the quarter only a little higher than its historical average and was sharply lower than its 2008 peaks. This 10% growth in demand came in spite of the continued weakness of the bridal sector.
In China, after the encouraging performance in Q2’24, platinum jewellery fabrication fell by 8% year-on-year and 6% quarter-on-quarter in Q3’24. Negative consumer sentiment, slower economic growth and caution about spending on discretionary items remained the biggest headwind.
In addition, the support from retailers’ and showrooms’ inventory restructuring (shifting some gold jewellery to platinum jewellery on the back of the gold price rallying) that we saw in Q2’24, ran out of steam.
Feedback from the supply chain suggests that leading retailers are now confronted with great pressure from lacklustre gold jewellery demand and have focused on network management. Only after achieving retail store consolidation will the leading retailers start to consider product inventory replenishment.
Indian platinum jewellery fabrication grew by 68% year-on-year to 66 koz in Q3’24, marking the second highest quarterly figure since 2018. This impressive growth was primarily driven by the strength in exports to the US, UK, and UAE, with an almost sevenfold increase compared to the same period last year.
This was primarily for inventory building ahead of the Thanksgiving and Christmas festivities in western countries. Additionally, the increasing price difference between platinum and gold has supported demand in Western markets. Domestically, the growth in fabrication was supported by stock building ahead of the key wedding and festive season, combined with the continued addition of new stores by organised retailers.
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