China's penchant for luxury platinum jewelry is fading despite lower global prices, leaving world demand for the metal exposed to sharper decline. China is by far the biggest market for platinum jewelry, making up more than 60 percent of global manufacturing use for the white metal in 2015.
We have already shown that neither mining production, nor technological demand drives gold prices, since gold – thanks to its uniquely high stock-to-flows--resembles an asset rather than commodity. Before we look at the drivers of gold investment demand, we have to analyze the role of jewelry demand and central bank buying in the gold price formation.
The Gems and Jewelry Export Promotion Council has released the details of imports of raw materials for gems and jewelry for the month of April this year. According to data, the gold bar imports by the country during the month witnessed a huge decline of 22.27 percent over the previous year.