With gold prices on the rise, Indian jewellers seem to be shifting their focus to platinum-based jewellery. According to an Assocham survey, nearly 76% jewellers are opting for platinum-based diamond jewellery over traditional gold and silver jewellery to tap the changing preferences of domestic consumers.
DS Rawat, secretary-general, Assocham, said that platinum-based diamond jewellery has started picking up pace in the country, with demand for it exceeding that for diamond-studded gold jewellery in metros.
The frequent price fluctuations in gold and silver seem to have prompted jewellery buyers to look at platinum and diamond-based jewellery, most diamond jewellery makers told the Assocham surveyors.
The share of platinum and diamond jewellery in the overall gold jewellery market has increased significantly over the last one year, and it is likely to reach 30-35% of total gold jewellery sales by 2015.
The price of the yellow metal had crossed the R32,000 mark during calendar year 2013. On the other hand, industry experts anticipate gold prices to continue fluctuating for a while as the rupee remains weak against the US dollar, Rawat said.
Assocham found a tremendous increase in sales of all types of diamond jewellery. On a year-on-year basis, the demand for diamond jewellery has grown by over 25% till now in FY14. There has been equal growth in high-end diamond jewellery.
According to Rawat, investments in platinum and diamond have been blooming in the past few years, thanks to the metal and gem’s ability to hedge against rising inflation and economic uncertainties.