BANGALORE: If you were planning to surprise your girlfriend with a rock for her ring finger, supersize it with a platinum band. Platinum prices
have dropped by almost 50% over the past one year from around Rs 3,200 per gram last February to approximately Rs 1,700 per gram.
This brings it much closer to the price of gold of around Rs 1,300 per gram. So a platinum chain weighing around 80g, which would have cost Rs 2.5 lakh last February, will now cost only around Rs 1.3 lakh. A gold chain of the same weight would cost around Rs 1 lakh.
Platinum prices peaked around last February when there was a power crisis in South Africa, which mines the bulk of the world's supply of platinum. "The auto industry uses platinum extensively as catalytic convertors in engines. The auto industry taking a hit due to recession has affected the prices of this precious metal too," says Vaishali Bannerjee, manager (India) for Platinum Guild International (PGI).
The price drop has come as a boon to jewellers who are launching new lines in this category. Pratibha Jewellery House (PJH), for instance, has launched a line of men's chains and another line of wedding bands and rings for men and women. "The awareness of platinum prices is not that high among customers. But we're hopeful that with some promotion of these prices, sales in platinum accessories and jewellery will see a rise," says Sanjeev Mohan, partner at PJH.
Orra's Platinum Couples, a range of rings for couples, for engagements and anniversaries, has seen good sales in the last three months. "We also launched Orra Platinum Eternity bangles, targeted at the more traditional market three months ago and the response has been fantastic," says Vijay Jain, director of Orra Diamonds.
But not everyone is optimistic about the low prices driving sales. "Since we make large accessories in platinum, a drop in the prices would affect the price tag significantly," says Kumar Ganjam, MD of Ganjam. "But the slowdown has affected sales so badly that I don't think the pricing will make too much difference to the mood of the customer."
The fact that platinum is still a niche product in India doesn't help matters. "The market for platinum is largely urban, which is a very small percentage of the Indian jewellery market. Also, it is the urban population that is more affected by the current economic slowdown, so we aren't so sure how robust the sales would be in this category," says Sandeep Kulhalli, VP of Tanishq.
