Platinum may be rare, but it is the third most-traded precious metal in the world, behind gold and silver.
With that in mind, here’s a list of the four main platinum uses. Scroll on to learn more about platinum’s key applications.
Catalytic converters are installed in a vehicle’s exhaust lines, between the engine and muffler, where they are used to moderate the dangerous qualities of exhaust. Specifically, the autocatalysts that vehicles contain convert over 90 percent of hydrocarbons and carbon monoxide into carbon dioxide, nitrogen and water vapor. They can also convert pollutants from diesel exhaust into carbon dioxide and water vapor, which is immensely helpful in reducing pollution.
Autocatalysts have been used in the US and Japan since 1974, and are now so common that over 95 percent of new vehicles sold each year have one. As a result, they are a significant source of platinum demand that is not likely to disappear in the future. Indeed, as pollution rules become more stringent, car companies are looking at creating even more efficient autocatalysts.
Platinum has many qualities that make it ideal for use in jewelry, and that is the second largest source of platinum demand. The metal is strong, resists tarnish and can repeatedly be heated and cooled without hardening or oxidizing.
When used to make jewelry, platinum is commonly alloyed with other platinum-group metals such as palladium, as well as copper and cobalt, so that it is easier to work with.
In 2024, platinum demand for jewelry was expected to increase 5 percent year-over-year to 1.95 million ounces, and move up to 1.98 million ounces in 2025.
Another platinum use is in the construction of hard drives with extremely high storage densities. And, because it is reactive to oxygen, oxides of nitrogen and carbon monoxide, platinum can be used to detect changes in the amount of those materials in vehicles and buildings. For the same reason, platinum is also used in medical sensors, particularly medical instruments that measure blood gases, to detect oxygen.
Industrial demand for platinum, including medical demand, was forecast to come in at 2.43 million ounces in 2024 before falling to 2.22 million in 2025.
Medical demand for platinum has increased in recent years, and is forecast to rise to 303,000 ounces in 2024 and 314,000 ounces in 2025.
Both gold and platinum have wealth-generating potential, but it’s important to determine which precious metals fit your investment strategy; consider looking at supply, demand and prices for each option before making a decision.
This is an updated version of an article originally published by the Investing News Network in 2014.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
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