Demand for platinum jewellery in China could weaken in the following months amid the global onslaught of Covid-19, the World Platinum Investment Council (WPIC) said in a recent report. 

Global platinum jewellery demand dipped 7 per cent to 2.09 million ounces in 2019, with China recording a steep decline of 14 per cent, data from WPIC’s Platinum Quarterly for the fourth quarter of 2019 showed.

“As coronavirus fears continue to rattle markets worldwide, there is the potential for the impact of the virus to reduce platinum demand if it is not contained within months; particularly platinum jewellery demand in China where containing the outbreak has already reduced store traffic,” the report said. 

Paul Wilson, CEO of WPIC, however cited opportunities for growth for platinum as a precious metal amid the novel coronavirus outbreak. 

“The sustained elevated level of global debt with negative yields maintains the increased investment attractiveness of precious metals, including platinum,” noted Wilson. “The coronavirus has added considerably to global risk, lifting the gold price materially and providing an underpin for platinum. This enhances platinum’s investment case, already bolstered by material demand growth potential.”

The WPIC also said platinum supply in 2020 is likely to exceed demand by a measly 1.5 per cent.