Recent increases in the price of platinum are squeezing the profit margins of Chinese jewellery retailers.

Analysts say that while stockpiles will enable retailers to avoid sharp price increases in the short-term, recent trends will eventually have to be passed on to the consumer.

The Shanghai Gold Exchange (SGE) saw prices top $900 per ounce at the end of last week.

"It's true prices are higher now, but it's not really a big concern," Liu Yili, a 26-year-old, who had recently purchased a necklace, told China's Xinhuanet news agency.

"I will still buy it if I like it... platinum is a symbol of elegance and treasure, I will not buy the substitution," she added.

Jewellers are expected to put off planned platinum purchases until such time as they can increase retail prices.