Page 25 - Bullion World Volume 5 Issue 06 June 2025

Bullion World | Volume 5 | Issue 06 | June 2025

The elevated gold price seen through the first quarter was seen as especially significant as CGCG is a state-
of 2025 as a consequence of heightened geopolitical owned entity that plans and co-ordinates domestic
risk is having a negative impact on gold jewellery supply of investment metals in consultation with the
demand in China. Here, gold jewellery businesses have Chinese central bank, reflecting the extent to which
begun to switch from gold to lower-priced platinum interest in platinum as an investment asset is growing
jewellery, while some wholesalers and regional retailers in China.
have been taking profits by liquidating unsold gold
inventory and building platinum stock. This isn't a Meanwhile, Guangzhou Futures Exchange (GFEX),
top-down revival, but a grassroots movement. It could a Chinese national futures exchange dedicated to
prove to be more sustainable as nationwide branded green commodities essential for the energy transition,
jewellery chains join this platinum resurgence. has announced the introduction of platinum and
palladium futures contracts which could be a game-
Other initiatives, including successful product changer for China. The planned RMB-denominated
development and retailers’ promotions via live contracts would be the first platinum and palladium
broadcasting platforms, together with healthy demand derivatives available in China, providing a mechanism
for both menswear and unisex designs, are also for businesses involved in the market to hedge price
supporting demand growth. risk and better manage their operations. For example,
the removal of price risk would allow platinum jewellery
In China, jewellery has a quasi-investment status and investment product fabricators to reduce the
and, as well as witnessing a resurgence in platinum premium charged for platinum products as well as the
jewellery demand, it is experiencing unprecedented discount on buyback.
investment demand, also driven in part by the widening
price gap between gold and platinum together with
greater awareness of platinum as an investment and a
credible addition to gold.
Shanghai Platinum Week

Prior to 2019, platinum investment demand in China 2025
was negligible. Yet last year it reached 226 koz, with
particularly strong growth in the investment bars of
500g or above category which alone grew by 20% to From July 7–10, 2025,
162 koz. This year, platinum investment demand in the fifth successive
China is expected to rise a further 24% to 281 koz as Shanghai Platinum Week
demand for investment bars below 500g increases
48%, indicating a stronger demand from retail co-organised by WPIC,
investors. will take place. Global
industry leaders, top
MARKET DEVELOPMENT
YIELDING RESULTS research institutions, and
policymakers will gather

This growth has, in large part, been made possible to explore the platinum
thanks to the efforts of WPIC and its partners in group metals’ strategic
China, which have resulted in far wider availability
of platinum products. For example, China Gold Coin role in China and beyond,
Group (CGCG) made history at the end of 2024 by against the backdrop of
launching its first-ever large-size platinum investment China’s surging platinum
bar after resuming the issuance of platinum Panda
coins in 2022. The 1kg bar, made of 99.95 per cent jewellery and platinum
pure platinum, carries a specially-commissioned investment demand.
design inspired by the ‘Fish Transforming into a
Dragon’ legend which is renowned in China. Its launch

25