China’s jewelry market is playing a key role in driving up platinum prices, as jewelers there shift their focus away from gold. This change comes amid a sharp drop in gold jewelry sales, which fell nearly 27% in the first quarter of 2025 compared to the previous year. The main reason behind this slump is the soaring price of gold, which hit an all-time high above $3,500 an ounce earlier this year. Despite Chinese consumers’ traditional preference for gold due to cultural reasons, many are now deterred by its high cost.
In response to falling demand for gold jewelry, Chinese jewelers have turned to platinum as a more affordable alternative. Platinum currently costs about one-third of what gold does per ounce, making it an attractive option for both manufacturers and buyers who price jewelry by weight rather than piece count. This shift has led China to import significant amounts of platinum—11.5 metric tons in April alone—which is the highest monthly intake seen in a year.
This surge in demand from China has contributed substantially to a global rally in platinum prices, pushing them up around 40% so far this year with spot prices nearing $1,265 per ounce. Meanwhile, although investor interest remains strong for physical gold bars and coins as safe-haven assets (with consumption rising nearly 30%), actual consumer purchases of gold jewelry continue to decline sharply.
However, some industry experts caution that while manufacturers and wholesalers are stocking up on platinum aggressively—trying to offset losses from slumping gold sales—end-user demand among Chinese consumers remains relatively muted at present. There’s concern that increased inventory might lead to slower future manufacturing if consumer buying doesn’t pick up accordingly.
Still, the current environment shows how economic factors like metal pricing can reshape consumer preferences and industry strategies quickly. For now, China’s pivot toward platinum is fueling one of the most notable rallies seen recently in precious metals markets worldwide—a trend worth watching closely as it unfolds further through 2025 and beyond.