According to the WPIC Platinum Quarterly Q1 2024, global jewellery demand increased by 5% to 486 koz (+22 koz) on the back of strong demand in India, along with improvements in most regions barring China. European demand in Q1’24 grew by 3% year-on-year in part as price differentials enabled the mass market/bridal segment to counter a shaky economic backdrop.
In addition, high-end jewellery offtake continued to grow. End-use in watches, however, fell, but by less than the -31% decline seen in Swiss platinum watch hallmarking. North American fabrication rose 1% (1 koz) in Q1’24, chiefly thanks to re-stocking after a surprisingly buoyant end to 2023, supported by the wide price differential to gold and more retailers stocking platinum.
Growth was curtailed, however, by signs that total jewellery sales fell for all metals? As general expenditure normalises and consumer wariness of the potential for weaker economic conditions grows. Japanese jewellery demand had a strong first quarter, rising by 10% year-on-year to 92 koz. Interestingly this came in spite of feedback from our contacts suggesting bridal demand remains lacklustre.
Instead it seems that the gains we saw during the period seem to have mainly come from kihei, neck-chains, pendants and other non-bridal designs. Anecdotal evidence points to some boost to demand due to the higher gold price pushing consumers/retail channels towards platinum. In China, platinum jewellery fabrication continued its downward trend in Q1’24, falling by another 9% (-10 koz) from last year’s already low base.
Competition from gold jewellery remained the most significant headwind. In addition to seasonal factors (Chinese New Year is traditionally a peak season for gold jewellery), the consistent increase in the gold price and growing awareness of gold as a value-preservation asset all fuelled consumers’ growing preference for gold jewellery.
This encouraged the supply chain to focus its product development and marketing activities more on gold rather than platinum jewellery, which weighed on the local platinum jewellery industry. Indian platinum jewellery fabrication jumped by 53% year-on-year (YoY) to 59 koz (1.82t) in Q1’24. The remarkable growth was primarily driven by record-high exports to the United States and the United Arab Emirates with a total of 29 koz (a nine- fold jump year-on-year) exported to these two nations.
This growth was fuelled by PGI India’s initiative to market platinum jewellery in the Middle East. Furthermore, fabrication was also helped by the addition of new stores by organised retailers and a growing number of existing stores displaying platinum jewellery. Domestic demand, on the other hand, remained flat due to volatility in gold prices, which hampered footfalls to jewellery showrooms.
