As gold prices ease after a strong multi-year rally, investors and jewellery buyers in the UAE are turning their attention to platinum – a rare and often overlooked metal that’s now showing signs of renewed momentum.
After nearly a decade of flat performance, platinum has quietly posted a 5% gain in recent weeks, while gold slipped by around 6%. Analysts say this divergence, driven by changing global economic conditions and shifting demand patterns, could be the beginning of a new chapter for platinum in both investment and jewellery markets.
Ole Hansen, Head of Commodity Strategy at Saxo Bank, notes that platinum is now testing key resistance levels. “If prices break above $1,025 per ounce, we could see a strong wave of trader interest,” Hansen said. “The recent gains have been driven by improving economic sentiment, particularly following easing U.S.-China trade tensions.”
Unlike gold, which thrives during uncertainty, platinum tends to benefit when the global economy strengthens due to its industrial demand. It plays a critical role in sectors like automotive manufacturing (especially catalytic converters), chemicals, and specialized equipment, which supports its value when growth expectations rise.
For Dubai’s luxury buyers, platinum’s allure has always been tied to its exclusivity. It’s rarer, denser, and purer than gold, which makes it a premium choice for rings and high-end jewellery. “Platinum jewellery often feels more substantial and lasts longer, but it also costs more due to the volume of metal used,” explained Rochelle Mariam, a Dubai-based precious metals analyst.
However, Mariam cautions that platinum may not be the ideal pick for those looking to resell their jewellery. “Unlike gold, platinum doesn’t have a stable buyback market. Many jewellers are hesitant to repurchase it because prices are more volatile, and liquidity is lower.”
For investors, the value argument becomes more compelling when comparing platinum to gold. Hansen pointed out that the platinum-to-gold price ratio recently hit an extreme, with one ounce of gold worth 3.6 ounces of platinum — a historical high. “This gap could narrow if platinum breaks its long-term downtrend,” he added.
Investment advisors in the UAE say platinum could offer a meaningful diversification option, especially for those already exposed to gold or equities. “It behaves differently than other asset classes, which makes it a smart hedge in balanced portfolios,” said Zubair Shakeel, a Dubai-based investment manager. “It’s not just a precious metal; it has strong industrial utility, which underpins its long-term appeal.”
Still, Shakeel advises caution. Platinum is less liquid than gold, meaning it’s not as easy to buy or sell quickly, and price movements can be sharper. “It’s best suited for investors who understand its role and are willing to hold through periods of volatility,” he said.
For jewellery lovers, platinum remains a luxury statement, even if its resale value lags behind gold. “You’re paying for craftsmanship, rarity, and durability — not resale returns,” Mariam noted.
As gold pauses and investors look for new opportunities, platinum may finally be stepping into the spotlight. Whether the current surge leads to a lasting uptrend will depend on global growth, technical price breakouts, and the continued revival of industrial demand.
