Rising demand for platinum jewellery

With restrictions on gold and more awareness of this substitute, import doubles to 40 tonnes in a year, aided by buyback assurances

Mumbai: Rakhi Agarwal, a mid-rank salaried woman in a western Mumbai suburb, was overjoyed this festive season when friend Rimmi told her about a new jewellery collection made of platinum. Saved through a regular cut in spending over 18 months, Rakhi bought a platinum ring weighing six grammes for the first time from a jewellery retailer.

She now advises all her friends to spend on platinum instead of gold, with the prospect of a price increase and a different look from the regular yellow metal wear. Rimmi, a software professional, spent a little over Rs 5 lakh on platinum jewellery collections for the first time, for her sister’s wedding. “It gives me the pleasure of owing a rare metal, with assurance of buyback similar to gold jewellery,” she said.

The changing perception towards platinum has encouraged younger aspirants to own a piece, as had been the case for gold until recently. There are two basic reasons for the change. Consumers have begun to feel platinum is available and affordable. Second, jewellers have widened the availability of ornaments.

In addition, platinum coins have become an investment option, without any restriction on sales unlike the case of gold coins, where the Reserve Bank of India has been monitoring continuously.

“Platinum is increasingly becoming a metal of choice for weddings and engagements. The white lustre brings out the sparkle of the diamonds. Every year, we introduce new designs. The male rings starts at Rs 65,000 onwards and the female rings at Rs 35,000,” said Vijay Jain, chief executive, ORRA, one of the largest jewellery retailers in this metal.

“Our consumer research and market reports suggest awareness for platinum is very high among younger consumers. They buy/gift platinum for special occasions; it is established as a precious gift of love. As the awareness and knowledge deepens, the market should see higher growth,” said Vaishali Banerjee, country head, Platinum Guild International.

Among the rising demand in platinum jewellery, love bands (couple rings), women’s chain/pendants and men’s chain or bracelet are the most popular. Banerjee says platinum jewellery demand rose a little over 30 per cent in 2013.

It is also used in photography. The implication of rising platinum demand is evident on imports. According to Mehul Choksi, chairman of Gitanjali Gems, a jewellery retailer with global presence, import of platinum was around 40 tonnes this year as compared to around 18 tonnes last year. He says the restrictions on gold will further raise platinum demand.