Rising prices set to curb solid platinum demand
By Zhang Fengming |
May 19, 2010, Wednesday
|
Print Edition
Print Edition
CHINESE demand for platinum jewelry, which hit a record in 2009 on a rising economy, is unlikely to be repeated this year as prices keep rising, according to an industry report.
Gross demand for the white metal almost doubled from 1.06 million ounces in 2008 to 2.08 million ounces last year, Johnson Matthey, a British company that is reputed as an expert on precious metals, said yesterday.
"Strong consumer demand, steady output and stock-building of raw materials and finished pieces all contributed to a record performance by the Chinese platinum jewelry market in 2009," said Johnson Matthey.
But the company pointed out that record demand for platinum jewelry in 2009 may not be repeated this year on rising prices.
"It's unrealistic to expect another year of such strong demand in 2010," Johnson Matthey said.
Platinum prices have gained 17 percent this year to trade at around US$1,700 an ounce. Rising investment demand may propel the white metal back to US$2,000 an ounce in six months, Johnson Matthey said.
"Recent higher bullion prices have started to impact upon the affordability of platinum jewelry, and there have been some early signs of inventory cuts in the first half of 2010, suggesting that while demand may be strong historically it is unlikely to reach the heights of 2009 this year," Johnson Matthey said.
Platinum prices hit a record US$2,250 an ounce in early 2008, fluctuated around US$2,000 until July 2009 and then corrected to US$1,450 late last year.
Gross demand for the white metal almost doubled from 1.06 million ounces in 2008 to 2.08 million ounces last year, Johnson Matthey, a British company that is reputed as an expert on precious metals, said yesterday.
"Strong consumer demand, steady output and stock-building of raw materials and finished pieces all contributed to a record performance by the Chinese platinum jewelry market in 2009," said Johnson Matthey.
But the company pointed out that record demand for platinum jewelry in 2009 may not be repeated this year on rising prices.
"It's unrealistic to expect another year of such strong demand in 2010," Johnson Matthey said.
Platinum prices have gained 17 percent this year to trade at around US$1,700 an ounce. Rising investment demand may propel the white metal back to US$2,000 an ounce in six months, Johnson Matthey said.
"Recent higher bullion prices have started to impact upon the affordability of platinum jewelry, and there have been some early signs of inventory cuts in the first half of 2010, suggesting that while demand may be strong historically it is unlikely to reach the heights of 2009 this year," Johnson Matthey said.
Platinum prices hit a record US$2,250 an ounce in early 2008, fluctuated around US$2,000 until July 2009 and then corrected to US$1,450 late last year.
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