MARKET INTELLIGENCE 市场情报 JNA March/April 2025 | 45 According to the Q3 2024 research, platinum jewellery demand will continue to move beyond the trough of 2023, with a second consecutive year of growth forecast for 2025, driven by a surge in US and Indian jewellery fabrication. Meanwhile, China, a key market for platinum group metals, experienced a significant downturn over the last decade, with demand plunging 79 per cent in 2023 from a peak of around 2 million troy ounces in 2014. The slowdown persisted in 2024 due to weak consumer spending amid domestic economic uncertainties. However, some level of recovery is expected in 2025, led by major retailers replenishing stock and product innovations that appeal to a diverse demographic, including menswear and unisex designs, according to the report. “To stimulate demand, it is crucial that we push the boundaries of product innovation to ensure our offerings resonate with the needs of consumers. Given that platinum jewellery is behind other categories in terms of product variety and designs, it is imperative for business to ramp up investment in product development,” said Zheng Feng, deputy general manager of China National Arts & Crafts (Group) Corp, at the China Platinum Group Metal Annual Conference held in Shenzhen on December 9, 2024. Platinum jewellery is also viewed as an imported commodity in China, thereby underscoring the need to “localise” platinum jewellery to fuel growth. This means companies must resort to “hyper-localised storytelling.” “To captivate Chinese consumers, we need to delve into and establish the cultural resonance of platinum, blending the essence of platinum with traditional Chinese culture while staying attuned to the nuances of modern society,” Zheng explained. While demand for jewellery is weak, WPIC reported growing investment in platinum bars and coins in China, with a 17 per cent increase in demand for larger bars (500g and above) in 2024 compared to 2023. The upcoming launch of platinum and palladium futures contracts by the Guangzhou Futures Exchange (GFEX) this year is expected to further boost platinum demand in industrial, jewellery, automotive and investment applications in China as they allow platinum users to manage lower price risks, said WPIC CEO Trevor Raymond. Resilient gold Despite positive signals in investment demand, the Chinese gold jewellery market experienced a notable decline in demand as consumers prioritised investments over luxury purchases. Data from the China Gold Association (CGA) showed China’s gold jewellery consumption reached 532.02 tonnes in 2024, marking a 24.69 per cent year-on-year decrease. In contrast, bar and coin investments rose 24.54 per cent to 373.13 tonnes. “Amid weak overall gold jewellery consumption and lower inventory turnover in 2024, gold jewellery enterprises managed to adjust their production and business strategies. They came up with innovative products or conceptual gold jewellery such as heritage gold and ‘Guochao’-style pieces,” CGA remarked. The World Gold Council (WGC) observed the same trend, noting that high gold prices had a “double-edged sword” effect on China’s gold consumption in 2024. “Strong gold prices alongside slow economic growth dented affordability for gold jewellery consumers, but when combined with declining yields, a volatile equity market and a weaker local currency, it attracted gold investors,” the council stated.
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