Demand for platinum jewelry in China is set to increase by 2.6 per cent in 2007, according to a new report published today.

That is in spite of the sky-high price that platinum is currently fetching, which the report - published by Johnson Matthey - claims could reach an all-time high within six months.

The company's 'Interim 2007 Platinum Review' suggests that platinum will reach $1,575 per ounce in the coming months, and will stay above $1,350 for the foreseeable future.

China is a major market for platinum jewelry, where fast economic growth is stimulating high demand for luxury goods.

Platinum is particularly popular. A 2006 survey from PGI found that 51 per cent of Chinese women saw platinum as their favourite metal for jewelry, while 84 per cent of newlyweds saw it as their preferred metal for wedding jewelry.
Chinese buyers are also interested in platinum for its industrial applications, particularly in the automotive field.

Johnson Matthey suggests that around a quarter of all platinum production is destined for use in jewelry.