Platinum hikes 5% as China’s jewellers pivot from gold 💍

Platinum futures break over the psychological $1000 mark, surging almost 5% after the most recent release of Chinese data on platinum imports. The increased demand was driven by the jewelery sector, as craftsmen are looking for a cheaper and less volatile alternative to gold.

Altough China has been the biggest platinum consumer worldwide, today’s data managed to generate a bullish signal regardless of an already high demand in the country. In April, platinum imports to China rose to 11.5 metric tones  (the highest in a year), reflecting the rapid development of platinum adoption in various industries. 

In Shenzhen’s Shuibei market — a major jewelry hub — the number of platinum retailers has tripled within a month, as jewelers are shifting from gold to platinum due to changing customer preferences and pricing dynamics. The metal is also crucial for the production of catalytic converters (especially for diesel engines), laboratory equipment and electronics.

The upbeat sentiment is further supported by a new report from the World Platinum Investment Council, which highlights a growing imbalance between supply and demand in the platinum market. According to the forecast, 2025 is expected to mark the third consecutive year of deficit, with a shortfall approaching 1 million ounces.

Contrary to gold (blue chart), platinum has been trading within a fairly stable range (890-1090 USD) over the past year, consistently reverting to its 100-day exponential moving average (dark purple). Source: xStation5