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gold jewelry sales recovering in china, but platinum left on the shelf

by:Keke Jewelry     2020-05-29
LONDON (Reuters)-
Gold jewelry sales in China\'s largest market have finally picked up after years of decline, but consumers are still deterred from platinum.
Chinese jewelry sales are an important part of global demand for physical gold and platinum, accounting for 14% and 16% of consumption, respectively.
Since hitting its peak in 2013, the shares of both companies have fallen by about third.
Analysts and jewelers report a lack of trust in platinum and a higher cost of exchanging cash in platinum makes it less attractive for older buyers.
Fashion at the same time-
Conscious young consumers prefer gold of lower purityto-day wear.
\"The Chinese traditionally prefer gold,\" said Ms. Wang, a sales assistant for Caibai Jewelry in central Beijing, which has shops in northern China and declined to give her name.
\"Gold sales are much better than platinum, because gold is a hard currency that can be exchanged for cash at any time if there is an emergency.
According to data from the World Gold Association, China\'s gold jewelry sales rose 7% in the first quarter of this year. After three years of decline, they rose in 2017 because consumer spending has shifted to other areas, foreign tourism, as well as demand for luxury goods, are drying up in the face of corruption.
Earlier reports showed similar declines in Chinese purchases of platinum jewelry in the first quarter, after annual purchases of platinum jewelry in China fell to the fourth year of last year. reut.
Rs/2L9qU4n Chinese consumers, especially those in rural areas, have no strong cultural connection with their platinum in gold.
\"There is not enough advertising for platinum in the store,\" Mr. Hu said. He runs another Caibai jewelry store on the outskirts of the capital, but he also refuses to give his name.
\"Two or three years ago, the sales of platinum products were much better.
The retail price of platinum is lower than pure gold, which makes it attractive to young buyers with less disposable income.
But analysts say these consumers also favor 18-
Carat gold, the cultural preference of gold metal persists compared to white metal.
In a speech at Platinum Week in London, Platinum Society International attributed the decline in demand for platinum jewelry in China to the dominance of outdated goods in stores.
Chinese jewellers have admitted that overstocking is a problem.
\"This is a headache,\" Hu said . \"
\"We are not going to reform it.
We will continue to sell it or put it in the warehouse.
\"Reworked Platinum, a well-known hard metal, is a lot harder for jewellers than reinventing softer gold, and it\'s a problem for those who buy value stores
Jewelers exchange old platinum products for 32 yuan per gram, while gold is 18 yuan.
This makes it more difficult for consumers to recover the original cost of platinum --
This is a big problem for those who think that jewelry is a ready-made source of cash.
\"Consumers can accept the old (platinum)
To buy a new one (or)
Cash, but bid-The communication is 3-
\"The price of gold is 5%, while the price of gold is about 1%,\" said Li, an analyst at GFMS . \".
Li predicts that platinum jewellery sales will decline further this year, but he said that although this is the first time, the outlook for gold is not necessarily optimistic.
Growth in the quarter was uncertain due to China\'s economic growth.
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