As gold prices take a breather, investors are increasingly looking for alternative precious metals to invest in. Currently, platinum—the rarer and often overlooked cousin of gold and silver—is showing early signs of a comeback. This raises an important question for UAE investors and jewellery buyers: Should they start paying more attention to platinum?
The Current Landscape of Precious Metals
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 has surged, largely due to strong central bank demand. However, recent developments indicate that this trend may be shifting.
“Platinum has long been struggling to build momentum,” Hansen noted. “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.” Recently, platinum gained about 5% in value, while gold lost around 6%. This shift occurred after easing trade tensions between the US and China, which improved the economic outlook. Such positive news tends to hurt gold, which thrives during uncertainty, while benefiting platinum, which is closely tied to economic activity through industrial demand.
Dubai Buyers: Understanding the Premium of Platinum
Platinum has always been considered a premium metal. It is 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 explains, “Platinum rings require more metal by weight, and that pushes up the price.”
While gold is often viewed as a safe haven during economic uncertainty, platinum behaves differently. Its value tends to rise when the global economy is strong, owing to its extensive use in industries such as automotive (in catalytic converters), chemicals, and laboratory equipment.
Platinum vs Gold: A Question of Value
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. However, this gap may start to close. Hansen pointed out that platinum prices are currently 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 significant shift.”
For investors in the UAE, this could be the signal they’ve been waiting for.
The Appeal of Platinum: Beyond Jewellery
While gold often dominates headlines and investment portfolios, platinum offers unique 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 viewed as a hedge against inflation, especially when interest rates are low. However, it has less liquidity, meaning it’s not traded as actively, which can make it harder to buy or sell quickly. Shakeel also emphasized platinum’s strength in industrial applications. “It’s dense, corrosion-resistant, and stable, which makes it valuable beyond jewellery,” he said. “These factors support its long-term value.”
Should You Invest in Platinum Now?
The decision to invest in platinum depends on your financial goals. If you’re looking for short-term gains, it’s essential to monitor the technical levels Hansen mentioned. A breakout above $1,025 could attract momentum traders and push prices higher.
For jewellery buyers, it’s important to 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,” Mariam cautioned.
Nevertheless, for those looking to diversify away from gold, platinum may present a unique opportunity—especially now, as gold cools off and platinum begins to stir.
Bottom Line for UAE Investors and Buyers
Rarity and Value: Platinum is rare and valuable, both for jewellery and industrial use.
Historical Discount: It’s currently cheaper than gold, which is historically unusual.
Building Momentum: If prices break key resistance levels, further gains could follow.
Resale Challenges: Jewellery resale can be tricky, but investment-grade platinum (like bars and coins) may offer better liquidity.
Diversification: Platinum could be a smart way to diversify, especially for those already holding gold and silver.
As the shine of gold dims for now, platinum might just be getting ready to sparkle. For investors and jewellery buyers in Dubai, this could be the perfect time to explore the potential of this precious metal.
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