As gold prices continue to break historic highs every day, sales of the yellow metal have plummeted in India’s vast bullion and gold jewellery markets, the biggest in the world. High prices of gold are forcing buyers of the precious metal these days to shift loyalties and embrace platinum.
Gold prices zoomed to a record of Rs 15,750 per ten grams in the Indian market on Wednesday in the wake of the global trend of the yellow metal surging to touch $1,000 per ounce now.
Indian jewellery and bullion dealers said that most gold jewellery shops have deserted looks in important gold streets like Zaveri Bazaar in Mumbai and Chandni Chawk in New Delhi. “People who are coming are here to sell gold, not to buy. Nobody is willing to buy gold at this price,” Suresh Mehta, a bullion dealer in Zaveri Bazaar said.
But Mehta says there is an increasing demand for platinum jewellery. “Platinum sales across India have gone up as many upmarket jewellery stores are selling platinum like hot cakes. Platinum has become a status symbol for many weddings,” he added.
Gold, diamond and platinum jewelleries are integral part of Indian weddings, especially among the rich and upper classes. Now people are hesitating to buy gold and embracing platinum thanks to the zooming price of gold.
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According to Vijay Jain, Chief Executive of leading jewellery chain Orra, there is a new-found love for platinum among Indian buyers because the precious metal has lost around 30 per cent of its value in comparison to gold. “Rich and middle class Indians are now opting for platinum jewellery items like wedding rings and chains,” he said. A 10-gm platinum ring is now priced around Rs 22,000 as against Rs 35,000 a year-ago.
Jain says platinum sales in his 30 jewellery stores have risen to around 35 per cent in the last six months.
The current price of platinum in the Indian market is around Rs 1,600 per gram, whereas gold price has shot up from Rs 1,300 per gram to Rs 1,550 in the last two months.
According to the Bombay Bullion Association, India consumed around 940 kgs of platinum metal in the fiscal year 2008-09. India, the largest consumer and importer of gold in the world, imported around 400 tons of gold during the same period.
“People are not looking at platinum as investment compared to gold. But they consider platinum as a good alternative to gold jewellery and ornaments because platinum prices have come down compared to the zooming gold,” said Varun Mishra, a precious metals dealer in Mumbai.
South Africa and Russia are the two major platinum producing countries. In other places, it is found as a by-product of iridium, rhodium and nickel. The low recovery of just five parts per million from the earth surface makes it more scarce.
Of the total global production of 6.7 million ounces, South Africa produced 5.29-million ounces, Russia 8.80-lakh ounces and North America 3.45-lakh ounces. Transvaal in South Africa, Urals in Russia and Columbia in US are the major platinum producing States.
The London Platinum and Palladium market provides the global benchmark prices “London fix”. Other major trading centres are New York Mercantile Exchange, Tokyo Commodity Exchange and Mid-American Commodity Exchange and India's Multi Commodity Exchange is also a new entrant to this commodity Futures.
Platinum is known as "high-octane gold", for its stronger price moves and prospects for a higher upside. Buying platinum is an easy way to invest in worldwide economic growth because the metal is essential to the economies of many industrialized nations.
South Africa and Russia are the two major platinum producing countries. In other places, it is found as a by-product of iridium, rhodium and nickel. The low recovery of just five parts per million from the earth surface makes it more scarce.
Of the total global production of 6.7 million ounces, South Africa produced 5.29-million ounces, Russia 8.80-lakh ounces and North America 3.45-lakh ounces. Transvaal in South Africa, Urals in Russia and Columbia in US are the major platinum producing States.
The London Platinum and Palladium market provides the global benchmark prices “London fix”. Other major trading centres are New York Mercantile Exchange, Tokyo Commodity Exchange and Mid-American Commodity Exchange and India's Multi Commodity Exchange is also a new entrant to this commodity Futures.
Platinum is known as "high-octane gold", for its stronger price moves and prospects for a higher upside. Buying platinum is an easy way to invest in worldwide economic growth because the metal is essential to the economies of many industrialized nations.
