About Platinum Prices
Platinum is one of the rarest precious metals, approximately 30 times rarer than gold. It is highly valued for both its industrial applications and its role as an investment asset.
The automotive industry is the largest consumer of platinum, primarily for catalytic converters in diesel vehicles. Platinum is also used in jewellery, chemical refining, electronics, and the emerging hydrogen fuel cell industry, which could significantly boost future demand.
Platinum prices are quoted in U.S. dollars per troy ounce and are traded on NYMEX/COMEX and the London Platinum and Palladium Market (LPPM). Supply is concentrated in South Africa (~70% of global output), making prices sensitive to mining disruptions, labour strikes, and energy shortages in the region.
Platinum Market Overview
Annual Mine Production
~190 tonnes
Above-Ground Stocks
~2,500 tonnes
Automotive Demand Share
~40% of total
Top Producer
South Africa (~70%)
Jewellery Demand Share
~25% of total
Hydrogen Fuel Cell Use
Growing rapidly
Platinum is 30x rarer than gold, yet currently trades at a significant discount. The platinum-to-gold ratio has historically averaged near parity, but has fallen below 0.5x — a level some analysts view as a deep value opportunity, especially given platinum
Platinum Historical Price Milestones
2001 — Bear Market Low
$415/oz
2008 — Commodity Supercycle
$2,290/oz
2008 — GFC Crash
$774/oz
2011 — Recovery Peak
$1,888/oz
2020 — COVID Low
$564/oz
20-Year CAGR
~3.5%
Platinum reached its all-time high of $2,290/oz in March 2008 during the commodity supercycle, then crashed 66% within months during the financial crisis. The diesel emissions scandal (2015) and the shift away from diesel vehicles structurally reduced automotive demand, keeping prices suppressed. The hydrogen economy represents a potential new growth driver.
Ways to Invest in Platinum
Physical Bullion
Bars & Coins
Direct ownership, rare collectibles
Platinum ETFs
PPLT, LPPM-backed
Liquid, tracks spot price
Futures Contracts
NYMEX PL
Leveraged, for active traders
Mining Stocks
IMPUY, ANGPY, SBSW
SA-focused, currency risk
Physical platinum coins (like the Platinum Eagle) carry higher premiums than gold due to smaller production runs. Platinum ETFs like PPLT offer easy access. Mining stocks are heavily concentrated in South Africa, adding currency risk (ZAR) and political risk. Futures offer leveraged exposure but require active management.
Frequently Asked Questions
Why is platinum cheaper than gold?
Despite being 30x rarer, platinum trades below gold due to weaker investment demand, reduced automotive usage (diesel decline), and concentrated supply risk from South Africa. Gold benefits from massive central bank reserves and a longer history as a monetary asset. However, many analysts consider platinum significantly undervalued at current ratios.
What is platinum used for?
Platinum's primary uses are automotive catalytic converters (~40%), jewellery (~25%), industrial applications (chemical refining, glass, electronics ~17%), and investment (~10%). The emerging hydrogen fuel cell sector uses platinum as a catalyst and could become a major demand driver as the hydrogen economy develops.
Could hydrogen fuel cells boost platinum demand?
Yes, hydrogen fuel cell vehicles use 30–60 grams of platinum per unit — roughly 5x more than a diesel catalytic converter. If hydrogen adoption scales as projected, fuel cell demand could consume 1–2 million oz of platinum annually by 2030, potentially creating a significant supply deficit.
Is platinum a good investment in 2025?
Platinum's historically low price relative to gold, growing hydrogen economy demand, and constrained supply from South Africa create a compelling value case. However, the shift away from diesel vehicles and South African political/energy risks are headwinds. Platinum is best viewed as a long-term, contrarian precious metals play.