What makes platinum different
Platinum is dense, extremely resistant to corrosion and has a very high melting point. It is also an excellent catalyst: it speeds up chemical reactions without being used up, which is why it is in catalytic converters and chemical plants.
Each year the world mines only a small fraction as much platinum as gold. It belongs to the six platinum group metals (PGMs), along with palladium, rhodium, ruthenium, iridium and osmium, which are usually mined together.
Where platinum demand comes from
Autocatalysts
The largest single use: catalytic converters, traditionally in diesel vehicles and increasingly in gasoline ones too.
Jewelry
Valued for its white colour and durability, with big markets in China and Japan.
Industry
Glass making, chemicals, petroleum refining, electronics and medical devices.
Hydrogen
Fuel cells and electrolysers use platinum. It's a possible source of future demand, though how big is uncertain.
A concentrated supply
Roughly 70% of mined platinum comes from South Africa, with Russia a distant second and Zimbabwe and North America after that. Mines are deep and costly, and power shortages, strikes or policy changes in one country can move the global price.
Recycling, mostly from scrapped catalytic converters, is a significant second source of supply.
Platinum versus gold
For much of the twentieth century platinum cost more than gold. Since the mid-2010s it has generally been cheaper, as concerns about diesel cars weighed on demand while gold attracted investment buying.
The two metals answer to different forces. Gold reacts mostly to interest rates, the dollar and investor fear. Platinum reacts more to car production, industrial activity and supply problems.
Ways to own platinum
| Product | Issuer | Purity | Worth knowing |
|---|---|---|---|
| American Platinum Eagle | US Mint | .9995 | The US Mint's platinum bullion coin, introduced in 1997 |
| Canadian Platinum Maple Leaf | Royal Canadian Mint | .9995 | Issued in some years rather than every year |
| British Platinum Britannia | The Royal Mint | .9995 | Carries the Royal Mint's security features |
| Austrian Platinum Philharmonic | Austrian Mint | .9995 | Euro-denominated |
| Platinum bars | Refiners such as PAMP and Valcambi | .9995 | Usually the lowest premium per ounce |
Platinum is also available through physically backed ETFs, mining shares and futures contracts. Mining shares are concentrated in South African companies.
Try it
Melt value calculator
Pre-filled with the latest price. Edit it to try another price.
Melt value
$1,700.15
0.9995 troy oz of pure platinum
Melt value is the metal content at spot. Dealers sell above it (the premium) and usually buy below it. Rare coins can be worth far more than melt.
Watch out for
Things to watch out for
- Wider spreads. Fewer dealers stock platinum, so the gap between buy and sell prices is often wider than for gold or silver.
- A small, volatile market. Supply disruptions or shifts in car demand can move the price sharply.
- One-country risk. So much supply comes from South Africa that local events can dominate the price.
- Demand forecasts are uncertain. Electric vehicles reduce catalyst demand, while hydrogen could add to it. Neither is guaranteed.
Good to know
Frequently asked questions
Why is platinum cheaper than gold if it's rarer?
Price depends on demand as well as scarcity. Gold has huge investment and central-bank demand. Platinum depends more on industry and cars, and weaker diesel demand has weighed on it since the mid-2010s.
What are the platinum group metals?
Platinum, palladium, rhodium, ruthenium, iridium and osmium. They share similar chemistry and are usually mined together, mainly in South Africa and Russia.
Does platinum tarnish?
No. Platinum resists corrosion and doesn't tarnish in normal conditions, one reason it's popular for jewelry.
Will hydrogen boost platinum demand?
It could. Fuel cells and some electrolysers use platinum, but how quickly hydrogen technology grows is uncertain, so treat it as a possibility rather than a sure thing.
Can platinum go in a retirement account?
In the US, platinum bullion of .9995 purity or higher can generally be held in a self-directed IRA through a custodian and approved depository.
This guide is for general education only and isn’t financial, tax or legal advice, and a link to a dealer isn’t a recommendation to buy. Facts about markets and products change, so check current details, premiums and fees, and talk to a licensed adviser before making decisions.
