Chinese jewellers are cutting back on their stocks of platinum because of the continuing price rises of the precious metal, according to industry experts.

Jewellers in Shanghai are also seeing a dip in demand as a result of the rising cost, with the vice chairman of Shanghai Gem and Jade Association discerning a clear trend.

"Most jewellers are lowering their stock of platinum, considering that buying a large amount of the precious metal at the current high level may translate into a loss when the price edges down," Zhao Dehua told Shanghai Daily.

Mr Dehua estimates that local jewellers have lowered their platinum stock by around 25 per cent in comparison with last year, with retailers concerned that shoppers will no longer be so keen on platinum items.

"The gaining prices may also deter more consumers from eyeing the precious metal as a good choice for decorating themselves," said Mr Dehua.

Some analysts say that the price spike was part of the natural cycle of demand, arguing that it was standard practice for jewellers to lower the stock to some extent when platinum prices are relatively high.

However, with the precious metal recently touching a 24-year high the full impact of the price change on the jewellery market is not yet clear.