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India, Japan platinum demand to be strong in 2017 - PGI

Reuters  |  SINGAPORE 

By Koustav Samanta and Manolo Serapio Jr

(Reuters) - Indian demand for jewellery will grow by double digits next year, and Japanese consumption will stay strong, the head of Guild International said, with buyers drawn to prices that are off more than 20 percent from an August peak.

was trading above $940 an ounce on Tuesday, up from an eight-month low hit the previous day, and it still remains up about 6 percent for the year so far. The drop-off in prices over the two months since Aug. 12 has widened platinum's discount to to the most since June.

While is a low-margin business for Indian jewellers, retailers can scoop up returns of about 50 percent for platinum, said Huw Daniel, chief executive of Guild International (PGI), an industry group funded by South African producers and refiners.

"In 2017, we're expecting significant double-digit growth in and reasonable growth in Japan," Daniel told Reuters on the sidelines of an industry conference in Singapore.

Young Indians are now more keen on buying either for themselves or as a gift, and that is "very different" to the traditional jewellery market in India, he said.

"Most jewellery in is easily convertible into other forms if necessary, so people buy as a savings vehicle. That's not the case with platinum. It's being bought as personal jewellery," he said.

Platinum's steep discount to is also luring Japanese customers, he said. "With a price like this we can see taking the share from white in jewellery," Daniel said.

The World Investment Council in September forecast a 520,000-ounce deficit in the market this year, up from a 455,000-ounce shortfall predicted three months earlier, citing robust demand and weak supply.

In top market China, however, demand remains weak amid an oversupply in jewellery and other luxury goods.

"We're hoping that market will bottom out in 2017," Daniel said.

(Reporting by Koustav Samanta and Manolo Serapio Jr.; Editing by Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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India, Japan platinum demand to be strong in 2017 - PGI

SINGAPORE (Reuters) - Indian demand for platinum jewellery will grow by double digits next year, and Japanese consumption will stay strong, the head of Platinum Guild International said, with buyers drawn to prices that are off more than 20 percent from an August peak.

By Koustav Samanta and Manolo Serapio Jr

(Reuters) - Indian demand for jewellery will grow by double digits next year, and Japanese consumption will stay strong, the head of Guild International said, with buyers drawn to prices that are off more than 20 percent from an August peak.

was trading above $940 an ounce on Tuesday, up from an eight-month low hit the previous day, and it still remains up about 6 percent for the year so far. The drop-off in prices over the two months since Aug. 12 has widened platinum's discount to to the most since June.

While is a low-margin business for Indian jewellers, retailers can scoop up returns of about 50 percent for platinum, said Huw Daniel, chief executive of Guild International (PGI), an industry group funded by South African producers and refiners.

"In 2017, we're expecting significant double-digit growth in and reasonable growth in Japan," Daniel told Reuters on the sidelines of an industry conference in Singapore.

Young Indians are now more keen on buying either for themselves or as a gift, and that is "very different" to the traditional jewellery market in India, he said.

"Most jewellery in is easily convertible into other forms if necessary, so people buy as a savings vehicle. That's not the case with platinum. It's being bought as personal jewellery," he said.

Platinum's steep discount to is also luring Japanese customers, he said. "With a price like this we can see taking the share from white in jewellery," Daniel said.

The World Investment Council in September forecast a 520,000-ounce deficit in the market this year, up from a 455,000-ounce shortfall predicted three months earlier, citing robust demand and weak supply.

In top market China, however, demand remains weak amid an oversupply in jewellery and other luxury goods.

"We're hoping that market will bottom out in 2017," Daniel said.

(Reporting by Koustav Samanta and Manolo Serapio Jr.; Editing by Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

India, Japan platinum demand to be strong in 2017 - PGI

By Koustav Samanta and Manolo Serapio Jr

(Reuters) - Indian demand for jewellery will grow by double digits next year, and Japanese consumption will stay strong, the head of Guild International said, with buyers drawn to prices that are off more than 20 percent from an August peak.

was trading above $940 an ounce on Tuesday, up from an eight-month low hit the previous day, and it still remains up about 6 percent for the year so far. The drop-off in prices over the two months since Aug. 12 has widened platinum's discount to to the most since June.

While is a low-margin business for Indian jewellers, retailers can scoop up returns of about 50 percent for platinum, said Huw Daniel, chief executive of Guild International (PGI), an industry group funded by South African producers and refiners.

"In 2017, we're expecting significant double-digit growth in and reasonable growth in Japan," Daniel told Reuters on the sidelines of an industry conference in Singapore.

Young Indians are now more keen on buying either for themselves or as a gift, and that is "very different" to the traditional jewellery market in India, he said.

"Most jewellery in is easily convertible into other forms if necessary, so people buy as a savings vehicle. That's not the case with platinum. It's being bought as personal jewellery," he said.

Platinum's steep discount to is also luring Japanese customers, he said. "With a price like this we can see taking the share from white in jewellery," Daniel said.

The World Investment Council in September forecast a 520,000-ounce deficit in the market this year, up from a 455,000-ounce shortfall predicted three months earlier, citing robust demand and weak supply.

In top market China, however, demand remains weak amid an oversupply in jewellery and other luxury goods.

"We're hoping that market will bottom out in 2017," Daniel said.

(Reporting by Koustav Samanta and Manolo Serapio Jr.; Editing by Tom Hogue)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
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