Platinum jewellery fabrication in India expected to increase by 28%: WPIC

Platinum jewellery fabrication in India should increase by around 28% this year as the global deficit continues for the second consecutive year in 2024 due to high demand for platinum jewellery, according to a new report by the World Platinum Investment Council.

“Indian platinum jewellery fabrication jumped by 15% year-on-year in Q2’ 24 achieving the highest second quarter figure in Metals Focus’ series, starting in 2019,” read the WPIC’s Platinum Quarterly report for Q2 2024, available on its website. “The growth was driven by the continued strength in exports, especially to the US, the UK, and the UAE, with an almost fivefold increase compared to the same period last year. Furthermore, fabrication was also helped by the continued addition of new stores by organised retailers and a growing number of existing stores displaying platinum jewellery.”
 
Global demand for platinum jewellery increased by 5% year-on-year and surpassed 500 koz for the first time since the fourth quarter of 2021, according to the WPIC. The widening price gap between platinum and gold is a boon to platinum’s popularity but domestic issues in India have hampered the growth of the precious metal in the short term.
 
“On the other hand, consumption in India declined by 12% year-on-year due to weak domestic sales,” read the report. “Discussions with fabricators during the recent PGI buyer-seller meet and the India International Jewellery Show revealed demand remained subdued in the domestic market due to volatility in gold prices, which hampered footfall into jewellery showrooms. However, with the recent import duty cut for gold, silver, and platinum, which led to a correction in domestic prices, a strong pickup is expected in Q3’ 24.”