Platinum and Gold Price Gap Widens

 

A gap increased by an average of 63% in Q2’25  

Recently published Platinum Quarterly Q2 2025 by World Platinum Investment Council [WPIC] reviewed 2025 second quarter Platinum market review-Jewellery demand. According to the review, global platinum jewellery demand increased by 32% year-on-year [YoY] in Q2’25 to 668 koz, the highest since Q4’17.  

This in turn contributed to the highest first half total since 2015. Jewellery fabrication in Europe is estimated to have risen by 7% in Q2’25. The widening price differential between platinum and gold, which increased by an average of 63% in Q2’25 versus Q2’24, has helped platinum outperform the broader weakness in the jewellery sector. 

In certain markets, we have seen platinum gain market share against the yellow metal. Meanwhile, a higher share of platinum in the bridal market, combined with relative price insensitivity for high-end branded jewellery, provided a degree of price inelasticity, limiting the impact of platinum’s own price gains in the quarter.  

Consequently, platinum’s jewellery performance in H1’25 was stronger than gold, which recorded a significant contraction in weight terms. Supporting this trend, UK hallmarking rose by 11% year-on-year in April-May, while Swiss watch hallmarking increased by 28% year-on-year in April-June.  

In North America, jewellery fabrication demand was broadly flat year-on-year. However, with imports declining, and lower stock replenishment versus Q2’24, consumption of finished jewellery is estimated to have grown by 2%.  

As in Europe, the widening platinum–gold price differential supported platinum jewellery in weight terms, as total consumer spend on jewellery in North America continued to increase. Platinum jewellery unit sales also outperformed gold, diverging from the broader trend of reducing the metal content per jewellery unit. Additional support came from gem-set platinum jewellery, where falling diamond prices boosted purchases, more than offsetting the 9% year-on-year increase in platinum prices. 

Japan was another market where the platinum-gold price gap continued to boost demand in Q2. Fabrication rose by 10% to around 105 koz, the largest figure recorded and first foray above the 100 koz mark since Q3’19. Once again feedback from our contacts suggested that both local sales and exports did well and we had positive feedback from the June Hong Kong show.  

We continued to hear about interest for platinum as an alternative to white gold from certain South East Asian buyers, although we should stress here that the absolute volumes of those flows remain limited. Turning to China, platinum jewellery fabrication more than doubled year-on-year in Q2’25, lifting total demand in H1’25 by 82% year-on-year.  

Faced with higher financing costs from rising gold prices, lacklustre retail sales, and a prevailing view that platinum was undervalued, many Shenzhen showrooms undertook aggressive inventory building. More than ten new platinum jewellery showrooms opened in Shuibei during Q2’25, each holding inventories of 200–300 kg. In addition, many small-scale jewellery counters in showroom basements shifted focus from gold to platinum.  

Most of the gains occurred in April and the first three weeks of May. However, without conclusive evidence that retail consumption is matching the pace of fabrication and concerns about a near term price correction grew, following platinum’s price gains, showroom and manufacturer activity slowed sharply in June.

India’s platinum jewellery demand remained resilient in 2Q 2025, with fabrication rising 10% year-on-year to 53 koz, despite a slow start to the year. Exports, however, fell 12% year-on-year due to uncertainty around US tariffs, weighing on overall fabrication.

Meanwhile, the expansion of major jewellery retail chains, combined with the higher margins associated with platinum, has encouraged more retailers to stock the metal and promote platinum sales – particularly as gold jewellery demand suffers from higher prices.  

Bi-metal jewellery, which combines platinum with yellow or rose gold, remains the fastest-growing segment. Its visibility is further enhanced as it is displayed within the more prominent gold sections of retail stores, helping to lift sales.