India’s platinum imports to rise as prices fall.

Kolkata: Platinum imports into India are set to rise this year as its prices have declined steeply relative to gold, fuelling an increase in demand for the precious metal globally used for encasing diamond jewellery. 

Imports may climb up to 18 per cent to 7.08 tonnes this year as platinum has become cheaper by Rs 8,090 per 10 gm in comparison with gold, said Vaishali Banerjee, MD, India, Platinum Guild International (PGI). 

“Imports were at 6 tonnes in 2018,” Banerjee said. 

The PGI India chief said that the consumers buy platinum jewellery to mark significant emotional milestones in their lives. The rarity of the metal and availability of internationally inspired designs have influenced purchasing decisions for both women and men. 

“Furthermore, the PGI marketing program has always created unique occasions for platinum jewellery purchase, infusing meaning into design and purpose,” Banerjee added. “These factors have helped create a strong consumer desire for platinum, and lower metal price has aided in converting that desire into demand.” 

Platinum is currently priced at Rs 24,490 per 10 gm. 

During Akshaya Tritiya, platinum jewellers reported a 35 per cent growth in sales, with certain regions reporting even higher off-take. “Consumer demand for platinum has been growing consistently, and we found that this latent demand converted into actual sales on Akshaya Trithiya. Our retail partners suggest that there has been a positive demand across all platinum categories and cities,” the PGI India chief said. 

Jewellers also said that platinum sales are rather brisk this year. “With increased awareness, platinum today ensures younger walk-ins at our showrooms. We plan to take platinum along as we expand into tier 2 and tier 3 cities,” said MD of GRT Jewellers India, GR Ananthapadmanabhan. 

GR Radhakrishnan, the other MD at GRT Jewellers India, said, “Apart from rings and bands, the demand for men’s jewellery in platinum has been growing consistently, making it one of our incremental lines of business today. We expect the platinum category to grow in the coming years.” 

Retailer said that demand for the metal is increasing in smaller towns as well. 

“There is an increased awareness about and desire to own platinum beyond just urban cities,” said Rajesh Kalyanaraman, executive director, Kalyan Jewellers.