China largest consumer of platinum jewelry

Shanghai (CNS) -- China remained the world's largest platinum consumer in 2011 in spite of the global recession, the Platinum Guild International (PGI) announced on Friday.

Platinum held more Chinese jewelry buyers' attention than gold last year, and this trend is not only on a dramatic upswing in the U.K. and Japan. The jewelry industry predicts that it will last through 2012.

In general, China and India have a larger appetite for platinum, while consumption in the U.S. and Japan remains constant, and interest in Europe declines.

The net demand of Chinese consumers for platinum in 2011 was 1.325 million ounces, or 10 percent more than last year. In terms of the value of platinum sold, the Shanghai Gold Exchange set a new monthly transaction record in September.

Contributing hugely to this phenomenon, says CEO Gao Weizheng of PGI, is the proliferation of retail jewelry stores seen in second and third-tier Chinese cities over the last 12 months.

Further expansion of retail networks in China will provide new stimulus for this industry, yet jewelry brands tempted to dive into the future Chinese market, warns Gao, will find successful exploitation lies in upgrading designs and craftsmanship.