Thursday, 13th January 2005 (4459 views)

The high cost of platinum is causing many Chinese consumers to favour gold jewellery, Reuters reports.

Both consumers and jewellery makers in China have lost interest in platinum, which hit a two-week high yesterday.

Duke Lee, managing director of Prime Platinum International, one of China's main platinum jewellery traders, commented: "I still don't see any fabricators or manufacturers who want to purchase platinum to start the wholesale business."

While demand for jewellery usually increases in the run up to the Chinese New Year, which falls in February this year, many consumers are turning to white gold and also the Italian-made 18 carat gold jewellery popularly known as K-gold.

Platinum analysts Johnson Matthey said in November that demand for platinum in China, which boasts the world's largest platinum jewellery market, was likely to drop by 20 per cent to 960 000 oz in 2004.

However, demand for platinum for use in jewellery and auto catalysts from Japanese buyers is likely to keep platinum prices at around $850/oz over the coming weeks.

 

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