UAE: As gold prices pause, is platinum next to shine for investors and buyers?

Dubai: When gold prices take a breather, investors often look around for the next precious metal to shine. And right now, platinum – the rarer, often overlooked cousin of gold and silver – is showing early signs of a comeback. So, should UAE investors and jewellery buyers start paying more attention to platinum?

According to Ole Hansen, Head of Commodity Strategy at Saxo Bank, platinum has “traded sideways for the past decade,” meaning its price has remained relatively flat, while gold surged higher, thanks largely to strong central bank demand. But things are starting to shift.

“Platinum has long been struggling to build momentum,” Hansen said. “But now, it’s showing signs of life. Important price levels are being tested, and if they break, we could see fresh interest from traders.”

Hansen pointed out that platinum recently gained about 5% in value, while gold lost around 6%. The change came after easing trade tensions between the US and China, which boosted the economic outlook. That kind of positive news tends to hurt gold, which thrives during uncertainty, and helps platinum, which is tied to economic activity through industrial demand.

Platinum has always been considered a premium metal. It’s rarer than gold, denser, and purer – which is why a platinum ring typically costs more than a similar one made of gold. As Dubai-based precious metals analyst Rochelle Mariam explained, “Platinum rings require more metal by weight, and that pushes up the price.”

So far, so good – but here's the catch: platinum jewellery, while luxurious, is often harder to resell. “The resale value of platinum is far less stable than gold,” Mariam said. “Fewer shops are willing to buy it back because its price is more volatile.”

While gold is seen as a safe haven – especially during economic uncertainty – platinum behaves differently. It rises in value when the global economy is strong, because of its wide use in industries like automotive (in catalytic converters), chemicals, and even laboratory equipment.

One of Hansen’s most striking observations is that platinum is still trading at a historical discount compared to gold. “At one point recently, it took 3.6 ounces of platinum to buy one ounce of gold – a record high,” he noted.

But this gap may start to close. Hansen explained that platinum prices are testing a key resistance level around $1,012 per ounce. “If prices break above that, we could see traders pile in, looking for momentum,” he said. “We’re also watching a long-term downtrend line, around $1,025 this month. Breaking that could mark a big shift.”

For investors in the UAE, that could be the signal they’re waiting for.

While gold often dominates headlines and portfolios, platinum has some unique investment advantages. “It’s a great way to diversify,” said Zubair Shakeel, a UAE-based investment manager. “Platinum doesn’t always move in the same direction as stocks or gold, so it can help balance out your portfolio.”

Like gold, platinum is seen as a hedge against inflation, especially when interest rates are low. But there’s less liquidity – meaning it’s not traded as actively – so it can be harder to buy or sell quickly.

Shakeel also highlighted platinum’s strength in industrial use. “It’s dense, corrosion-resistant, and stable, which makes it valuable beyond jewellery,” he said. “These factors support its long-term value.”

It depends on your goals. If you’re looking for short-term gains, you’ll want to keep a close eye on the technical levels Hansen mentioned. A breakout above $1,025 could attract momentum traders and push prices higher.

If you're more of a jewellery buyer, understand that while platinum looks and feels premium, it’s not always easy to resell. “Platinum pieces are often worth their weight, but you may only get back 30% to 50% of the current value when reselling,” said Mariam.

Still, for those who want to diversify away from gold, platinum may offer a unique opportunity – especially now, as gold cools off and platinum stirs.

As the shine of gold dims for now, platinum might just be getting ready to sparkle.