Platinum shines as affordable alternative to gold, PGI India sees strong demand

Platinum's rally this year hasn't dulled its shine for consumers. Despite surging 58% since January, the metal still trades at almost half the price of gold, creating what Platinum Guild (PGI) calls a “very, very consumer friendly” opportunity for Indian buyers.

She added, "Platinum is at such a fantastic price right now. It's seen a very strong surge since the beginning of the year, but it's still almost 40% cheaper than 18-carat gold—and this is 950 platinum. So it's a unique opportunity.”

Platinum has had a stellar run this year, rising 58% so far and nearly 7% in the past month alone. Backed by persistent supply deficits, the World Platinum Investment Council (WPIC) projects a shortage of 850,000 ounces in 2025—the third consecutive annual deficit.

Yet despite the rally, platinum remains priced at nearly half the level of gold, offering what industry players see as a compelling value proposition for buyers.

Banerjee noted that sales have been strong, with a 15% increase in the April–June quarter. Platinum's appeal is also spreading beyond big cities into smaller towns, with younger buyers in particular drawn to it as a modern and meaningful metal.

This trend isn't limited to India. Demand is growing globally—in China, Japan, the US, and the Middle East. With gold becoming prohibitively expensive in some of these markets, many jewelers are turning to platinum, further boosting sales.

Overall, PGI India expects the category to grow strongly this year. "Our expectations for this year are close to 15% up over last year. Demand will be strong. Sentiments are good. People are expecting a good Diwali season, a good wedding season. So yes, we are pretty hopeful," Banerjee said.