To think that the platinum market is on a par with the gold market, such a view is already obsolete.

The gold market is diminishing quickly while the platinum is gaining favor of the consumers. So the days for platinum to be on vogue are near at hand.

According to the sales record in the first quarter of this year, the sales of platinum got on wings in Chinese market with a sales-amount hitting 560,000 ounces, the first time to surpass that of Japan, a long-time No.1 platinum market of the world.

In a short span of 7 years since 1995, China has stood out the world biggest platinum consuming market from a mere nobody in the international platinum market.

Gold becomes gloomy while platinum is dazzlingly bright

It's not rare to see people have some gold trinkets in the major cities of Shanghai, Beijing and Shenzhen in China.

However, platinum and diamond are finding favor in most consumers' eyes.

We see now the platinum ornament, instead of going in parallel with that of gold, is tending to take its place in the market.

Official data indicate that by the end of 2001, the global demand for platinum ornaments alone witnessed a growth of 19 percent in which it saw the biggest increase in Chinese market, a drastic increase of 53 percent in sales-amount to some 1.2 million ounces.

Though China lags behind the US and India in world gold-market, yet its need for platinum has by far exceeded that as forecast.

With a brisk market demand for platinum ornaments, this has put China well in the place as the largest consuming country of the world for platinum ornaments.

In his report, Johnson Mattews, the specialized broker from South Africa to the platinum market in China said: The platinum market tends to be good in China and South Africa is going to develop the platinum export to China.

Lonmin Platinum, the third large platinum producer in South Africa, is preparing to invest some US$545 million for the expansion of its production.

The British "Financial times" said like this: To think that the platinum market is on a par with the gold market, such a view is already outdated. The gold market is diminishing quickly while the platinum is gaining favor of the consumers in the market and so the days for platinum to be on vogue are near at hand.

It sees a quick increase in demand and the price is on the rise.

Zeng Zhiyong, manager of the Baohetian Jewelry Co., Ltd. in Shenzhen said to the reporter: "In Shenzhen, the processing of platinum has by far overtaken that of the gold and I saw the trend. So I shifted the gold business over to the platinum. For the time being, the raw platinum of PT900 in Shenzhen is RMB 141.7 yuan/per gram and the platinum of PT950 RMB 143.9 yuan/per gram.

The gold market is concentrated in Shanghai while platinum is in Shenzhen and some 70-80 percent of platinum in the country are imported by way of Shenzhen. Here, they get processed and then are disposed and sold to other parts of the country."

The World Gold Council proved at the beginning of the year that for the manufacturing industry it saw as big a demand for platinum as for gold. As platinum, like its "brother" pallabium, is mainly used in making catalytic exchanger in automobile industry, especially in making the kinescope for TV and PC sets and fiber-glass as well. And so, the later half of 2002 will see an increased market for platinum according to the prediction of experts.

Gold remains a favor in the eyes of the people

Though platinum sees a big sale in China, gold is still a favor in the eyes of common masses.

Mme Lu of Beijing Minrenfu Jewelry Co., Ltd. has another say of herself, "It sees a good sale of platinum though in Beijing with the ready-made product of PT900 to sell at RMB 160 yuan/per gram and that of PT950 at RMB 190 yuan/per gram, the rising sale of platinum is a reflection of the people for the fashion. However, it also has something to do with the big investment in advertisement. But I myself have a liking of gold. The superiority of gold is irreplaceable so long as its value-keeping and conversion into cash are concerned."

Liao Wenzhong, manager of Xiangjiang Jewelry Co. also expressed that it's not easy to process the platinum. Moreover, its price is quite fluctuating, which poses a big pressure on clients and so gold is good to buy on the safe side.

Mme Wang in the office of China Gold Association told the reporter that so far the gold market hasn't been opened while platinum business is fully commercialized in the market.

In such circumstances, should any units of platinum ornament like to join the association, it's still impossible for them to be put on the agenda for management.

Platinum is in the category of noble metal about which the association doesn't know much in terms of its possible sales changes in China.

Nevertheless, gold will continue to play a major role in a time to come.

(People’s Daily May 22, 2002)