Platinum is a rare metal used in many industries. It is valued for its resistance to corrosion, high melting point, and ability to speed up chemical reactions.
However, mining challenges and limited supply have made it harder to meet growing demand. This raises an important question: Is platinum still a good investment despite these supply issues and changing market conditions?
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Platinum Market Overview
The platinum market is facing a sustained supply deficit, with projections estimating an average shortfall of 689,000 ounces per year from 2026 to 2029, roughly 9 % of annual demand.
Most platinum supply comes from primary mining operations, concentrated in South Africa, Russia, and Zimbabwe—countries with the largest known reserves. However, the industry is also seeing rapid growth in secondary production, which involves recycling and metal recovery.
Recycling is becoming an important source of supply, supported by advancements in recovery technologies and the increasing adoption of circular economy principles. These efforts reduce dependence on newly mined platinum and help minimize environmental impact, making recycling a growing force in the global market.
Several major companies in the platinum industry. Anglo American Platinum, Vale, and Glencore remain leading producers, focusing on sustainable mining, improving efficiency, and expanding their market presence through strategic partnerships and technological advancements.
Recently, Impala Platinum announced its plan to acquire a 100 % stake in Royal Bafokeng Platinum, further consolidating its position as a global industry leader. Similarly, Heraeus Holding and BASF SE formed a joint venture in China—BASF Heraeus Metal Resource Co. Ltd.—to recover platinum and other precious metals from used automotive catalysts.
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Key Drivers of Platinum Demand
Platinum is used in automotive, industrial, jewelry, and investment sectors. The automotive industry is the largest consumer, followed by demand in jewelry and clean energy technologies. As industries change, platinum continues to be important, particularly in efforts to reduce emissions and develop alternative energy sources.
Automotive Industry
Platinum is used in catalytic converters. This helps reduce vehicle emissions by breaking down pollutants (nitrogen oxides, sulfur oxides, and carbon particulate matter). As emission regulations become stricter in North America, Europe, and Asia, more vehicles require these systems, increasing demand for platinum.
Even as electric vehicles (EVs) become more common, hybrid vehicles still use catalytic converters, keeping platinum in demand. Platinum is also being used more frequently in gasoline engine catalysts, replacing palladium in some applications.
Platinum catalysts are essential for fuel cells, which generate power by combining hydrogen and oxygen to produce electricity and water. Fuel cells are anticipated to become a preferred eco-friendly power source, driving significant demand for platinum.
Another area of platinum use in transport is fuel cell electric vehicles (FCEVs). These vehicles run on hydrogen fuel cells, where platinum acts as a catalyst to produce electricity. While demand for fuel cell technology is increasing, researchers are working to reduce the amount of platinum needed per vehicle. Some countries aim to cut platinum use in fuel cells from 0.3 g/kW to less than 0.125 g/kW by 2030, which could limit future growth in demand.
Industrial Uses
Outside of the automotive sector, platinum is used in several industrial processes. For example, it is used as a catalyst in petrochemical refining, helping convert crude oil into fuels and other products. It also plays a role in isomerization reactions, where it helps convert xylene mixtures into precursors for polyethylene terephthalate (PET), a material used in plastic production.
In glass manufacturing, platinum is used in high-temperature, oxidation-resistant dies for fiberglass, fiber optics, and crucibles. It is often combined with rhodium—sometimes up to 40 %—to improve durability. Platinum and iridium are also used because they do not oxidize and have low adhesion properties, making them well-suited for handling molten glass.
Platinum is also found in electronics, particularly in hard disk drives, where it improves storage capacity and durability. It is used in cobalt-chromium-platinum alloys as part of the first layer on aluminum substrates, enhancing magnetic recording performance. Although electronics account for only 2–3 % of total platinum demand, the metal is important in improving data storage and device longevity.
Medical and Scientific Applications
In medical implants, platinum alloys are found in pacemakers, defibrillators, stents, and catheters. It is often combined with iridium or tungsten to improve strength and conductivity. Some brain implants for Parkinson’s treatment and cochlear implants also use platinum alloys, which may contain up to 20 % iridium for added durability.
Platinum is also used in cancer treatment drugs, such as cisplatin, carboplatin, and oxaliplatin. This is because platinum can inhibit cell division, thereby slowing tumor growth. However, unlike in industrial applications, platinum used in pharmaceuticals is not recovered after treatment, leading to a loss of material over time.
In dentistry, platinum and palladium are commonly used in dental alloys, with some containing up to 60 % palladium. In some regions, platinum recovery from medical waste, particularly after cremation, is now required due to environmental regulations.
Platinum is also used in scientific research. It is used in electrodes for electrochemistry, scanning microscopes, and high-temperature furnaces. Platinum-tipped probes are used in atomic force and scanning tunneling microscopes, while platinum heating wires are essential in furnace manufacturing.
Jewelry Market
Platinum has been used in jewelry for centuries. It is valued for its durability, purity, and ability to hold gemstones securely.
Over the past two decades, demand for platinum jewelry has increased, particularly in North America and China, where it has overtaken Japan as the primary market.
Unlike gold, platinum jewelry sales tend to rise and fall with price changes. When platinum becomes much more expensive than gold, demand drops. Jewelry alloys usually contain 85-92 % platinum, with small amounts of palladium, ruthenium, or iridium added for hardness.
In recent years, platinum coin jewelry has become more popular, especially in markets where people buy platinum as an investment.
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Platinum as an Investment
Platinum is often considered an alternative investment to gold and silver. Its value is influenced by both industrial demand and investor interest, making it a more volatile but potentially rewarding asset.
Investors can buy platinum in different forms, including bullion coins, bars, and financial instruments like exchange-traded funds (ETFs) and certificates.
Physical Platinum: Coins and Bars
Several countries issue platinum bullion coins, which are widely traded and recognized for investment. Some of the most well-known include:
- Platinum American Eagle (U.S.)
- Canadian Platinum Maple Leaf
- Australian Platinum Koala
- Chinese Platinum Panda
- Isle of Man Platinum Noble
These coins are typically 99.95 % pure platinum and are available in one-ounce and fractional sizes. Investment-grade platinum bars are also available, usually in 10-ounce and smaller sizes, produced by various refiners.
For collectors, proof platinum coins offer an additional investment option. These coins, such as the American Eagle Proof, are produced in limited quantities and often sell at a premium in the secondary market.
Platinum in Retirement Accounts
Since 1998, platinum has been eligible for inclusion in Individual Retirement Accounts (IRAs) in the U.S. Initially, only gold and silver were allowed, but the legislation was expanded to include certain platinum bullion coins and bars.
Investors can now hold platinum within an IRA as long as it meets the required fineness standards (99.95 % pure) and is stored with an approved custodian.
Platinum Storage and Certificate Programs
For those who prefer not to hold physical metal, platinum can also be invested in through storage programs. These allow investors to own platinum without taking physical possession, while still benefiting from price movements.
Programs such as the Mocatta Delivery Order (MDO) and the Perth Mint Certificate Program allow investors to store platinum in high-security vaults for a low yearly fee. Investors receive a certificate confirming ownership and can choose to redeem their metal or hold the certificate as an asset.
Platinum Demand and Investment Outlook
Platinum demand has grown worldwide, driven by both industrial needs and investor interest. The automotive industry remains the largest consumer, with stricter emission regulations and the transition to hydrogen fuel cells shaping future demand. The Asia-Pacific region, particularly China, is seeing rising industrial and jewelry demand, while North America continues to be a major market for automotive and refining applications.
Platinum is also gaining interest as an investment asset. Like gold and silver, it is seen as a hedge against inflation and economic uncertainty. However, because its price is influenced by both industrial use and investment activity, it tends to be more volatile than gold.
Some investors view platinum as an opportunity for capital appreciation, believing its scarcity and industrial importance will drive long-term value. However, supply constraints, automotive demand, and economic conditions all affect price fluctuations.
For those seeking portfolio diversification, platinum offers exposure to both precious metals and industrial markets, making it a unique alternative to traditional assets like stocks and bonds.
As global demand rises, driven by technological advancements and industrial growth, platinum’s value as a commodity and investment remains strong. Sustainable mining practices and recycling will be key in balancing supply and demand in the years ahead.
References and Further Readings
- Tang, H. et al. (2023). Platinum-group metals: Demand, supply, applications and their recycling from spent automotive catalysts. Journal of Environmental Chemical Engineering, 11(5), 110237. DOI: 10.1016/j.jece.2023.110237, https://www.sciencedirect.com/science/article/abs/pii/S2213343723009764
- Hughes, A. E., Haque, N., Northey, S. A., Giddey, S. (2021). Platinum Group Metals: A Review of Resources, Production and Usage with a Focus on Catalysts. Resources, 10(9), 93. DOI: 10.3390/resources10090093, https://www.mdpi.com/2079-9276/10/9/93
- Platinum-Group Metals Statistics and Information [Online] Available at https://www.usgs.gov/centers/national-minerals-information-center/platinum-group-metals-statistics-and-information (Accessed on 14 March 2025)
- Jan‘25, Five-year supply/demand outlook; platinum deficits persist, palladium’s are deeper and last longer [Online] Available at https://platinuminvestment.com/investment-research/essentials/jan25-five-year-supply-demand-outlook-platinum-deficits-persist-palladiums-are-deeper-and-last-longer (Accessed on 14 March 2025)
- Platinum Market Size, Share, and Growth Analysis [Online] Available at https://www.skyquestt.com/report/platinum-market (Accessed on 14 March 2025)
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