PLATINUM: A Deep Dive
Including 4 main uses, 3 reasons to be bullish, PGR/GPR rations, supply & demand issues, Platinum v Palladium, top 5 platinum producing companies and more
Today’s post is going to have in depth look into Platinum.
Last week we covered Palladium, and you can read about that here.
The Uranium Deep Dive also came out a couple of days ago and you can read that here.
What is Platinum?
Platinum:
Is a rare, dense, silvery-white precious metal
Is a member of the platinum group metals (PGMs)
Has the atomic number 78
Has a very high melting point of 1,768 °C
Is much rarer than Gold or Silver
Is very malleable, making it easy to work with
Is corrosion resistant
4 Main uses of Platinum are:
Industry
The current biggest use of Platinum is for catalytic converters. Catalytic converters help to reduce harmful emissions by converting them into less toxic substances. For example, turning carbon monoxide into carbon dioxide.
Platinum is also widely used in the green hydrogen economy as it is used as a catalyst for electrolysers. Platinum is a critical catalyst in hydrogen fuel cells, especially Polymer Electrolyte Membrane fuel cells (PEMs), which are used for clean transportation.
It can also be used in both petroleum refining and glass manufacturing.
Investment
As mentioned in the GSR article, Platinum can potentially be a very good investment for those not wanting to purchase gold. You can probably buy physical platinum from a number of coin dealers. These will likely be in the form of both coins and ingots.
It is not traded or purchased as regularly as gold or silver. Please always do your own homework and research before making your investment decisions.
Medical Applications
Platinum is a biocompatible metal, meaning that it does not react in the body. That is NOT an excuse to eat any physical platinum that you might have sat around by the way!
Because of its biocompatibility, it can be used for implants, pacemakers and even cancer drugs.
Jewellery
Platinum is a very popular form of jewellery use in Asia. Its rarity and shine makes it very attractive to wear. Its durability is also a contributing factor for its jewellery use.
Platinum Supply + Demand structures
Supply
Platinum is extremely rare and makes up less than 0.003% of the Earth’s crust.
The 4 main countries that supply Platinum are:
South Africa (approx. 70% of the world’s supply)
Russia - mainly via the Norilsk Nickel mines
Zimbabwe
Canada
Other countries such as Australia and USA do produce Platinum but not as much as the above 4 countries.
Supply Challenges
The rarity of Platinum and the usual depth of it (it is normally found approximately 2,000m BELOW ground level) means that it is not the most cost-effective mineral to mine. It’s current price of circa $985 is also a current contributing factor.
Political risks are always in play. The biggest producer in the world is South Africa. Unfortunately, SA has been plagued with issues recently and they show no signs of abating.
A decline in platinum rich ore grades mean that Platinum will become more expensive to mine moving forwards. Thankfully oil is declining at present, so this is one positive at the time of writing this article as this helps to reduce overall mining extraction costs.
Demand
Demand is covered in depth by the ‘4 main uses’ section above.
Industry (The automobile industry counts for 40% - 45% of global demand)
Jewellery accounts for approximately 30% of global demand)
Investment demand
Medical applications
Supply/Demand Imbalances
Overall, the declining supply of an already rare element combined with the rising industrial demand means that there could be a sustained industrial imbalance moving forwards. The key difference between Palladium and Platinum is that Platinum CAN be used in electric vehicles.
Given the way in which the world is going in terms of ‘green energy’, it seems likely that demand is going to be more or less sustainable.
This is one of the reasons to be bullish on Platinum. The below charts are with help from ChatGPT.
Projected Platinum Supply and Demand through to 2030
Pricing Challenges
Platinum pricing can be prone to more volatility than gold or silver due to the scarcity of it and also because of the main jurisdictions in which it is mined i.e. South Africa and Russia.
Platinum has a lower market liquidity than gold and silver and, similar to silver, is more sensitive to industrial changes.
The weakening of the US Dollar might also have an impact on the price moving forwards.
Current Price + PGR/GPR
Thank you to Bullion by Post for the charts and please note that these prices/ratios were correct at the time of finishing this article on Tuesday 29th April 2025.
The current price (in USD) for an ounce of Platinum is approximately $985. The charts below show the last year and last 20-year price charts in USD.
The current Platinum to Gold ratio sits at 0.299 (1 year and 20-year charts below)
Inversely, the Gold to Platinum ratio sits at 3.35 (1 year and 20-year charts below)
With there being currently a 62% chance that Gold will finish the year above $3,200 USD, then it is likely that the GPR will remain high and that the PGR will remain low. This creates a potential arbitrage opportunity by buying physical Platinum and then selling that for Gold when the PGR increases. NB - NOT INVESTMENT ADVICE
3 reasons why Platinum could be attractive as an investment (NB - NOT INVESTMENT ADVICE)
As the world moves toward clean energy, Platinum has a clear role to play in hydrogen fuel. Even if that fails, then it still has a use in catalytic converters
Supply-demand imbalance (as mentioned above)
Platinum is priced much lower than gold and is rarer
Platinum v Palladium
As discussed last week, Palladium has often been priced higher than platinum due to its scarcity and role in the automobile industry. As Platinum demand grows due to the likely expansion of the hydrogen industry, this will have an impact on the price premium that palladium has traditionally had over Platinum.
Palladium is pretty much solely tied to the car industry. Platinum has a more diversified role in the world.
In the piece on Palladium, I wrote:
If you do not have a position in gold or silver or platinum, then the thesis would be to start positions in those 3 metals (especially silver) first.
If you have physical positions already then you could look to purchase some physical Palladium. This would have to be on a purely speculative basis though.
I am personally not looking to start a position in Palladium at present as I find Silver more attractive.
My thesis is that if you are looking to invest into physical metals, then look at Silver first, then Gold and then Platinum.
Top 5 Platinum producing companies in the world
I asked Grok to compile a list of the 5 Platinum producing companies in the world, based on the latest available data and by per metric tonne. For full disclosure, I have a position in Sibanye-Stillwater and due to the nature of Palladium and Platinum, you might find that these companies are very similar!
Anglo American Platinum (Amplats) - South Africa
Production (2023): ~54.43 metric tonnes (1.75 million ounces)
Based in Johannesburg, South Africa, Amplats is the world’s largest platinum producer, operating 11 mines in South Africa and Zimbabwe. It accounted for ~38% of global platinum supply in recent years. Major operations include the Mogalakwena and Amandelbult mines in the Bushveld Complex.
Impala Platinum Holdings (Implats)
Estimated 2023: ~35–40 metric tonnes (based on market share and South Africa’s 120,000 kg output)
Also HQ’d in Johannesburg, Implats operates in South Africa (Impala Rustenburg, Marula) and Zimbabwe (Zimplats, Mimosa). It’s the second-largest platinum producer, with significant operations in the Bushveld Complex and Great Dyke.
Sibanye-Stillwater
Estimated 2023: ~25–30 metric tonnes (based on South Africa and U.S. contributions)
Johannesburg-based, with major platinum operations in South Africa (Marikana, Rustenburg) and the U.S. (Stillwater, East Boulder mines in Montana). Acquired Aquarius Platinum (2016) and Lonmin (2019), enhancing its PGM portfolio.
Norilsk Nickel (Nornickel)
Estimated 2023: ~20–23 metric tonnes (aligned with Russia’s 23,000 kg output)
Russia’s largest mining company, based in Moscow, produces platinum as a by-product of nickel and palladium mining on the Taimyr and Kola Peninsulas. Also operates in South Africa and Botswana. World’s largest palladium producer, with platinum as a secondary output.
Northam Platinum Holdings
Estimated 2023: ~14–16 metric tonnes (based on proportional output)
South African company with operations in the Bushveld Complex (Zondereinde, Booysendal mines). Focuses on platinum, palladium, and rhodium, with refining contracted to Germany’s WC Heraeus.
3 Fun Facts about Platinum
Platinum is incredibly dense. One cubic foot weighs about 1,340 pounds, which is much heavier than gold or silver. It is literally a heavyweight champ!
Spanish conquistadors in the 1500s dismissed platinum as “platina” (little silver) and tossed it aside, thinking it was worthless!
The largest platinum nugget ever found, weighing 9.5 kg (21 lbs), was discovered in Russia’s Ural Mountains in the 19th century.
Summary
Platinum is a very useful element. It has a bright although somewhat undetermined future at the moment. Platinum could also potentially be a very good arbitrage play if the PGR increases/GPR decreases.
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CC
This is a super clear and thorough breakdown of platinum — I love how it covers everything from its physical properties to its real-world uses and supply challenges. The part about platinum’s role in the green hydrogen economy really stood out to me, especially since clean energy is such a hot topic right now. Have you noticed if investors are starting to take platinum more seriously compared to gold and silver, given its growing industrial importance? Or does it still feel like a niche play for most?