GJ Town India

Global platinum jewellery demand contracted 5% YoY   During Q3’21 platinum demand struggled to maintain the momentum of the first half, as the increasing shortage of key components (including semi-conductors), together with constraints on some raw materials, saw dramatic downwards revisions in the automotive market.   In addition, at times during the quarter the optimistic market tone subdued as the rise in Covid-19 cases prompted localised restrictions, serving as a reminder that economies remain fragile in this post-peak-pandemic era.    The negative impact on investor sentiment due to lower autocatalyst demand, was compounded by contagion concerns following news that Ever Grande might default on its debt obligations, as well as by growing expectations that interest rates would rise earlier than previously expected, to offset rising inflation. Changing forward market conditions, meanwhile, encouraged outflows of platinum from NYMEX depositories.    All these factors resulted

  Import duty on platinum has been reduced to 10% Ms Vaishali Banerjee, Managing Director-Platinum Guild International (PGI)-India said “The Budget presented by the Finance Ministry, will lead to positive outcomes for the jewellery industry.   It is heartening to see that the import duty on platinum has been reduced to 10%, which is a welcome decision made by the government.   This will boost consumer sentiment and in turn demand, benefiting both the industry and the consumers as the market recovers in 2021. We look forward to a year of a strong recovery.”

A remarkable V-shaped recovery after  1%  YoY growth in Q2 following 56% YoY slump in Q1   Recently Platinum Guild International released the Platinum Jewellery Business Review (PJBR). Overall PJBR says, China’s GDP continued its steady recovery, owing to a stringent lockdown and tracking system to control Covid-19. Platinum jewellery outperformed other categories, delivering a remarkable 13% YoY growth in fabrication, thanks to pent-up bridal demand, new collection launches, PGI’s Reboot during key festival occasions and favourable platinum/gold metal pricing.   India’s GDP contracted at a slower pace in Q3 due to the gradual reopening of economic activities. Platinum jewellery sales picked up among strategic partners. High gold prices present an opportunity to convert consumers from gold to platinum, especially for entry price point products.   The second wave of Covid-19 in Japan peaked in early August, enabling some business recovery during Q3. Platinum jewellery retail sales