The price of platinum reaching $1,289.50 in June 2025 is having a notable impact on jewelry retailers, especially in markets like China where consumer preferences and metal prices are closely intertwined.
Gold jewelry sales have been declining sharply, with Chinese gold jewelry consumption dropping nearly 27% in the first quarter of 2025 compared to the previous year. This slump is largely due to gold’s soaring price, which hit record highs above $3,500 an ounce earlier this year. As a result, many buyers are hesitant to spend on gold jewelry despite its cultural significance. Instead, investors have shifted towards buying gold bars and coins as safe-haven assets rather than ornamental pieces.
In this environment of “gold fatigue,” platinum has emerged as an attractive alternative for jewelers and consumers alike. Platinum’s price remains about one-third lower than that of gold, making it more affordable while still being a prestigious precious metal. Jewelry manufacturers and distributors are increasingly turning to platinum to revive sales and offer better value products that can attract customers back into stores.
Chinese jewelers have responded by significantly increasing their imports of platinum—April 2025 saw the highest monthly intake in a year at 11.5 metric tons—as they stockpile the metal for use in new designs aimed at capturing consumer interest amid falling demand for gold jewelry.
This shift has contributed to a sharp rise in global platinum prices—up around 40% so far this year—with spot prices hovering near $1,265 per ounce by mid-June. The surge reflects both increased demand from jewelers seeking alternatives and ongoing supply constraints worldwide.
However, some industry experts caution that while retailers may be stocking up on platinum aggressively now, actual consumer purchases might not yet fully reflect this enthusiasm. There could be excess inventory building up if end-user demand does not pick up as expected.
Still, with platinum offering a compelling combination of relative affordability compared to gold and growing appeal due to its unique qualities (such as its white color), many jewelers see it as key to navigating current market challenges. This trend is helping sustain retail activity even amid broader uncertainties affecting precious metals markets globally.
In summary: Platinum’s current pricing landscape is reshaping how jewelry retailers approach product offerings—pivoting away from expensive gold toward more accessible yet luxurious options—to maintain customer interest during times when traditional favorites face headwinds from high costs and shifting buyer behavior.