Interest in platinum has increased from China this week, as jewellers prepare for better sales ahead of the country's holiday season.

Although China has renewed its interest in the metal, buying on price dips in the market, experts believe that the amount bought will probably be limited, as the country has ample stocks of platinum and prices remain high.

The news represents an important return to the market for the world's largest consumer of platinum jewellery, after poor margins among manufacturers had kept the country out of the physical market, preferring to rely on old stocks to meet demand.

But China's buying spree is set to continue for the next few months at least, as one dealer explained: "Usually, we have sales picking up pretty dramatically from September to early October because of the holidays. There will be a lot of weddings as well during that period."

He told Reuters: "I assume the buying out of Hong Kong is for the Chinese market but I don't think the amount is big. We may be seeing some movements within the next one to two weeks because retailers have to start placing orders to manufacturers."

China has been looking to increase its position on the global platinum stage, and recently abolished VAT and the VAT rebate on the export of precious metals, including platinum and pgms.


Ÿ Adfero Ltd