Dubai’s Jewellery Shift: Gold for Investment, Platinum for Style as Prices Soar
In a significant shift for the region’s treasured gold souks, Dubai’s jewellery market is witnessing a clear divergence in consumer behavior. As the price of gold soars to record highs, breaching the AED 500 per gram mark, the precious metal is increasingly being viewed through a financial lens. Simultaneously, platinum is emerging as the new favourite for everyday wear and ornamental jewellery, capturing the attention of style-conscious buyers.
This trend is particularly evident during the current festive season. While foot traffic in jewellery stores remains robust, retailers report a noticeable decline in the quantity of gold purchased per customer. Shoppers are entering stores with the same budgets as previous years, but due to the skyrocketing prices, they are leaving with less metal.
The New Motto: Same Budget, Less Gold
Arjun Dhanak, director at Kanz Jewels, confirms this evolving pattern. “People are increasingly buying gold for investment these days. Jewellery sales continue … but the quantity has gone down,” he states. Clients are maintaining their spending levels, but the soaring value of gold means they receive fewer grams for their money.
In response, consumers are pivoting towards lighter, more intricate gold designs or pieces that artfully combine gold with other metals and gemstones. This strategy allows them to own beautiful jewellery without the prohibitive cost of heavy, pure gold pieces.
Platinum’s Moment: Style and Value Combined
The most pronounced trend filling this gap is the rising demand for platinum jewellery. Once a niche metal, platinum is now gaining mainstream traction for its compelling value proposition and sophisticated appeal. The price gap between gold and platinum has widened to approximately 40 percent, making platinum a more accessible and economically viable option for daily wear.
“Historically, there was a period when platinum commanded higher prices than gold, but the reverse is now the norm,” notes Dhanak. This price advantage, coupled with platinum’s inherent durability and brilliant white luster, is driving its popularity beyond traditional engagement and wedding rings.
Demand has expanded significantly to include men’s bracelets, chains, and matching couples’ bands. Vivek J, retail head at Malabar Gold & Diamonds, observes that specially curated platinum couple bands are now among the store’s most preferred choices.
“The combination of platinum’s pricing advantage and its aesthetic appeal has made it a compelling alternative,” says Vivek. While he stops short of saying platinum has overtaken gold, he confirms a “noticeable shift in buyers’ preferences.”
Malabar Gold & Diamonds has recorded significant jumps in platinum sales in the current financial year, especially for wedding bracelets, bands, and couples’ sets. The men’s jewellery category, while still strong in gold, is seeing platinum close the gap rapidly. Vivek attributes this success to platinum’s natural brilliance, a growing variety of contemporary designs, strong inventory, and the support of dedicated sub-brands.
Gold’s Enduring Role: The Ultimate Safe Haven
Despite this shift towards platinum for ornamentation, jewellers are quick to emphasize that demand for gold is not disappearing—it is simply evolving. At its current stellar price levels, gold is increasingly regarded as a secure, safe-haven investment and a reliable financial hedge.
Buyers are now strategically allocating their funds, purchasing high-purity gold coins, bars, or classic bangles not just for adornment, but as a store of value and a part of their investment portfolio.
In essence, the Dubai jewellery market is strategically adapting to new economic realities. Gold is solidifying its role as a premier investment asset, while platinum is successfully carving out a dominant space as the go-to metal for stylish, modern, and value-driven jewellery. This dual trend highlights the dynamic nature of consumer preferences in one of the world’s most vibrant gold markets.