Platinum has been very strongly associated with love gifting, globally and in China. The WPIC said in its third quarter report in November that the platinum market would record another deficit in 2020, partly owing to a recovery in jewellery sales in China. In addition, 2021 would also represent the continued growth of the China market.
Platinum jewellery sales had fallen for seven consecutive years in China. Looking to 2021, global jewellery demand is forecast to gain 13% – some 246,000 ounces – with all regions seeing double-digit growth, said the WPIC.
Platinum is more competitive. Gold prices have increased way too much since the pandemic. Overall platinum jewellery sales jumped 20% in the third quarter from a year earlier.
Platinum has almost doubled from a mid-March low, with a 25% surge since the beginning of November. But at $1,060 an ounce, it’s still much less pricey than gold, which was trading above $1,800/oz, said a newswire.
“If a person has more disposable income and is re-evaluating life, they’re more likely to spend it on love gifting with platinum,” WPIC said. Platinum being so much cheaper than gold or palladium “doesn’t make sense.”