WPIC Hails Indian Jewellery Industry’S Pivotal Role In Driving Global Demand For Platinum

Considering platinum is far more challenging to come by and 30 times rarer than gold, it's easy to understand why it's just that little bit more expensive

Platinum is one of the world’s rarest and most expensive metals; pre-Columbian South Americans are said to be its discoverers. However, the metal didn’t gain any recognition until the 18th century. The Spanish people called the metal platina, which translates to ‘little silver’, as they look like the white metal silver.

But, in contrast to silver, platinum is immensely valuable and can be deemed to be its purity, strength, durability, and rarity. Initially, the application of platinum ranged from laboratory equipment to weaponry manufacturing. But, by 1870, the metal had stepped into the world of luxury, becoming a favourite of the elite in Europe. Platinum jewellery is the ideal backdrop to diamonds and gemstones, resulting in its acceptance in fine jewellery making.

The popularity of the metal was strikingly apparent in the wedding jewellery category. Platinum became the preferred metal for occasions that call for celebrations, such as engagements, weddings, and more, becoming a symbol of love and commitment.

India’s jewellery industry is playing a pivotal role in driving global demand for platinum, as highlighted in the latest Platinum Quarterly report released by the World Platinum Investment Council (WPIC). The surge in Indian jewellery fabrication, coupled with persistent supply constraints, is expected to lead to a third consecutive market deficit of 539 koz in 2025.

India’s growing middle class, increasing disposable incomes, and evolving consumer preferences have fuelled the demand for precious metals, including platinum. This has led to a significant uptick in jewellery fabrication.

In Q3 2024, Indian jewellery fabrication surged by 68% year-on-year to 66 koz, contributing to the overall 7% increase in global jewellery demand to 478 koz.

This rise, along with gains in key markets such as Japan and North America, will help overall jewellery demand for 2024 increase by 5% (+102 koz) year-on-year to 1,951 koz. This strong performance is expected to continue, with a projected 2% increase to 1,983 koz in global jewellery demand in 2025.

Growth is anticipated to continue in India, and also expected in North America, driven by post-election sentiment, and, in China, supported by product innovations.

There is a very simple and accurate formula to calculate the resale (melting) value of old platinum jewellery. This formula only takes into account the melting value of raw platinum & not any gemstones or diamonds.

Take it for platinum testing or assaying lab and have it tested for purity. The lab will give you a test report. which will state the accurate weight of the sample and also its purity in percentage or karats.

Value of Platinum in the sample = (Weight of Platinum x Purity of Platinum x Rate of Platinum today) / 100

Example, let's say the sample weighed 10 grams with a purity of 95% & rate of raw platinum today is ₹ 2,200 per gram; Value of Platinum Today (using percentage purity) = 10 x 95 x 2,200 / 100 = ₹ 20,900 only.

It will come as no surprise to hear that platinum is one of the world's rarest metals. Compared to its more common periodic table sibling, gold (where around 1,500 tonnes are mined annually), only 160 tonnes of platinum are mined each year, and from a small number of locations.

These facts alone provide platinum with a rarity and unique appeal, setting it apart from some other well-known precious metals.

Considering platinum is far more challenging to come by and 30 times rarer than gold, it's easy to understand why it's just that little bit more expensive. Because of this price difference, it’s worth knowing what the pros and cons of platinum jewellery are before jumping into investing in platinum pieces.

The platinum versus gold debate is a nuanced one, as both metals have their own unique set of advantages and disadvantages. Platinum is more durable and hypoallergenic, making it an excellent choice for those with sensitive skin. Gold, on the other hand, offers a classic appeal and is available in various colours like yellow, white, and rose.

Ultimately, the "better" metal is subjective and depends on your personal preferences and needs.

If you value a piece that will stand the test of time, both in terms of style and substance, then platinum will be the option.

Its unique characteristics make it not just an investment in jewellery, but an investment in quality, longevity, and peace of mind.

Platinum is generally considered a good investment, and its demand is increasing. However, platinum's resale value is lower than other metals, and it can be difficult to resell.