Platinum is one of the rarest precious metals, roughly 30 times rarer than gold. About 40% of demand comes from automotive catalytic converters, and the remainder from jewelry, industrial applications, and investment.

Why It Matters

Platinum's strong link to the auto industry—especially diesel vehicles—makes it sensitive to emission regulations and the transition to electric vehicles. Hydrogen fuel cells, which require platinum catalysts, could provide significant new demand.

Supply Concentration

Over 70% of global platinum is mined in South Africa, creating supply concentration risk. Power outages, labor strikes, and regulatory changes in South Africa can sharply affect prices.

Market Impact

When platinum trades at a discount to gold (as it has since 2015), it is often seen as a value opportunity by precious metals investors. The platinum-to-gold ratio is a key indicator.