As government restrictions continue to keep gold imports under check, the most recent data released by the Gem and Jewellery Export Promotion Council (GJEPC) indicates that platinum exports have more than doubled during January this year. India’s platinum imports during the month totaled $1.51 million, soaring by nearly 140% over the year.
According to Platinum Guild International, the retail demand for platinum jewellery grew by 30% in 2013. The imports statistics for 2013 substantiate the strong rise in demand. The country’s platinum imports surged from 18 tons in 2012 to 40 tons in 2013.
Profit margins on platinum jewellery at retail level in India were greater than gold in 2013, prompting more retailers to enter the platinum market. The metal’s popularity too boomed in the country especially due to marketing initiatives driven by industry groups such as Platinum Guild International.
The platinum demand was hugely driven by retail jewellery sales. According to Bombay Bullion Association (BBA), platinum as an investment product has not gained much popularity among Indians.
The country has been witnessing a sudden surge in demand for platinum jewellery since mid-2013. There has been a visible change in perception towards platinum especially among younger generation. Platinum jewellery has become a preferred choice for weddings and engagements.
The stretched curbs on gold and silver imports may continue to keep the demand for platinum high.