Precious Metal Shake-Up: Platinum’s boom is breaking all traditional benchmarks in the PCMs market and it’s throwing very encouraging waves across the gems & jewellery industry. Spot platinum prices recently soared over 4.5% in a single day, building on last week’s dramatic 10% spike, and crossing above the $1,200 per ounce level for the first time since May 202Photo credit: Stephen Wanshura 1. This bullish breakout isn’t just a metals market success story. It’s an early indicator of a historic shift in consumer demand and investment sentiment.
Precious Metal Shake-Up
With gold growing ever-more unaffordable and global supply chain constraints narrowing, platinum is fast becoming the alternative of choice for both consumers and retailers. Consequently, analysts anticipate a significant positive movement in gems and jewellery stocks, particularly those companies with a robust presence in platinum-based products.
Platinum’s Record Soar & Underlying Drivers
After a 10% gain in the week of June 19, spot prices leapt ~4.5% on June 26, crossing above $1,200/oz their highest level since May 2021.
Year-to-date, platinum is up ~44–50%, while strongly outperforming gold (≈30%) and silver (~25%).
A confluence of supporting factors is creating a perfect storm for the rally:
- The World Platinum Investment Council (WPIC) forecasts a 966,000‑oz deficit in 2025 the third year of deficits in a row.
- Gold fatigue rotation: -32% drop in Chinese gold jewelry demand, as platinum soared +26% shifting jewelry demand where value is located.
- Industrial demand increase: Increasing application for catalytic converters in internal combuston vehicles, hydrogen fuel-cells and electronics.
- Tight lease rates & backwardation: Elevated lease costs (≈13–15%) and backwardation signal physical scarcity.
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Impact on Gems & Jewellery Stocks
1. Consumer Behavior & Margins
When gold is more expensive (~$3,300–3,500/oz), consumers and retailers switch to platinum jewelry providing the same prestige at a lower price point.
This pivot, which amplifies top line growth and shores up margin stability, is a boon for companies that have robust platinum product pipelines.
2. Stock Performance
With a wider product mix (like Rajasthan-headquartered Titan, Kalyan Jewellers), these firms are likely to gain from a boost in platinum-based demand.
Higher platinum prices are likely to increase manufacturing costs. We see limited downside to margins from pricing power and consumer substitution.
3. Investment Re-Rating
Precious-metal industry investors often re-rate jewellery stocks whenever dynamics at the metals’ prices change. A rising platinum price tends to increase investor sentiment towards these equities.
4. Fossil Fuel Supply Chain Companies
Surprisingly positive and negative impacts on manufacturers using platinum catalysts, or hydrogen fuel-cell components (e.g., specialities in the auto/hydrogen sectors) might earn.
However, firms in the gems & jewellery sector generally gain more on retail premiums than bear input cost risk.
Financial & Market Insights
These inflows told a more optimistic ETF story. Inflowing analyst reports have pushed up funds like Abrdn Physical Platinum Shares (PPLT) ~18% in 2025, indicating stronger overall market confidence.
Technical analysts note sustained momentum with overbought RSI readings (>80), but structural supply-demand dynamics support the bull case .
A decline to $1,100–1,150/oz would be viewed as a potential buy-on-dips opportunity, with potential upside to $1,250–1,350 by late 2025.
The recent platinum surge driven by supply constraints, gold fatigue, and industrial demand creates a favorable environment for gems & jewellery stocks:
- Sales volumes are likely to improve due to positive shifting consumer preferences.
- Margins can continue to be strong through good product market placements.
- Positive re-rating upside as platinum rally continues.
Focus on jewelry players with platinum-rich portfolios, pricing agility, and strong brand positioning these factors amplify benefits from the ongoing precious-metal cycle.
