Platinum Uses and Core Demand Drivers | Updated Platinum Market Analysis

 

What is Platinum Used For? 

Platinum is one of the most useful precious metals in the world. Despite being considerably cheaper than gold, platinum is a versatile mineral with a vast set of uses across multiple industries. Platinum’s usefulness makes it one of the most cost effective precious metals for investing, and the beautiful, lustrous shine of a platinum coin or bar is enough to make any bullion stacker’s mouth water. 

What is platinum used for? Platinum is used to produce dozens of technologies that consumers use every day. Some of the most popular platinum uses include:

• Catalytic converters
• Jewelry 
• Electronics (including hard drives and LCD screens)
• Chemotherapy technologies 

Platinum is less valuable than gold, but some investors prefer platinum to gold. An important reason why platinum is so popular is the metal’s usefulness. Because platinum is so useful to dozens of industries, demand for this precious metal is always high. 

On this page, learn about the top 5 uses of platinum, core demand drivers in the platinum market, and the qualities that make platinum the world’s most useful precious metal. 

The Top 5 Uses of Platinum

Although platinum is an essential mineral used in dozens of industries, five stand out as the most vital demand drivers in the platinum industry. The top 5 platinum uses as of 2024 include: 

• Catalytic converters
• Jewelry 
• Coins and bars
• Electronics
• Dentistry and healthcare

Clearly, platinum has a wide range of different uses. There are very few metals on this planet that are used to treat cancer, build fuel-efficient vehicles, and power electronic devices. In a sense, platinum does it all. Since its discovery in the 1700s, platinum has become perhaps the most essential of all precious metals. 

Below, we’re taking a look at the products consumers use on a daily basis that require platinum to function. 

Catalytic Converters

The automotive sector accounts for around 30-44% of global annual demand for platinum. Most of the platinum purchased by the automotive industry is used to produce catalytic converters, which help to filter out harmful biproducts as vehicles convert gasoline into energy.

What precious metals are in catalytic converters? Platinum is not the only precious metal used in catalytic converters, which is one reason why catalytic converters are among the most commonly stolen car parts in America. Catalytic converters also contain palladium, another platinum group metal, and rhodium. 

Demand for platinum in the automotive sector is heavily influenced by the popularity of gas-powered vehicles. Researchers say that the increasing dominance of the electric vehicle industry is a major stressor on the platinum market, since electric vehicles do not use platinum-heavy catalytic converters. 

For now, though, there’s no denying that catalytic converters are the most important use of platinum. Most of the world’s platinum goes to the automotive sector so that manufacturers can create safe, fuel efficient, and environmentally friendly vehicles for consumers. 

Jewelry 

Around 23-30% of the world’s platinum over the past five years has been used to produce jewelry, according to the World Platinum Investment Council. Gold and silver jewelry have always been status symbols, but it wasn’t until relatively recently that platinum jewelry became fashionable among wealthy men and women. Part of the reason why platinum jewelry is a somewhat modern invention is platinum’s extraordinarily high melting point – 3,224 degrees Fahrenheit. 

In the late 19th century, jewelers with access to new technology were able to reliably produce platinum jewelry. The metal’s lustrous, reflective shine was an instant success, especially in Europe and the United States. Platinum is shinier than silver, and it’s also quite a bit rarer. 

Today, platinum jewelry is still extremely popular. Over one-fifth of all mined platinum eventually becomes jewelry, making the jewelry industry one of the world’s leading demand drivers of platinum. 

Platinum Coins and Bars

As a platinum bullion dealer, we’re a little bit biased, but investment-grade coins and bars are probably the most exciting use of platinum bullion. As it turns out, much of the world agrees! The World Platinum Investment Council finds that anywhere from 10-20% of global platinum demand comes from the investing sector. 

Like platinum jewelry, platinum coins and bars have not always been particularly popular. The high melting point of platinum was a major obstacle for mints who wanted to produce platinum bullion coins and bars. Platinum melts at around 3,224 degrees Fahrenheit, while gold’s melting point is much lower at 1,948 degrees Fahrenheit. 

How popular are platinum coins and bars? In the past few decades, we’ve seen an explosion in demand for platinum investment products. Popular government mints like the United States Mint and the Royal Canadian Mint regularly release beautiful platinum coins, giving platinum investors quite a bit to choose from. Private mints also produce platinum products, including privately minted platinum bars from world-renowned bullion distributors. 

Electronics 

Platinum is also extremely useful in the electronics industry. Platinum is highly conductive, which makes it helpful as a component of the electrodes used in popular electronics. Computer hard drives and hard disks, LCD displays, fiber optics, and dozens of other electronics use trace amounts of platinum.

What electronics use platinum? Aside from consumer electronics, platinum plays an important role in the manufacture of technologies in other sectors, including the military and aerospace industries. Every day, consumers walk past hundreds of electronics containing platinum. 

Dentistry and Healthcare 

Dentistry and healthcare are two of the most surprising platinum uses. Platinum is used in a number of different medical technologies, and it even helps improve cancer treatments!

Dentists use small amounts of platinum, along with other metals, for tooth fillings and veneers. Throughout history, platinum was sometimes used to produce dentistry equipment and actual medications. Medications today sometimes use trace amounts of platinum. 

Of all platinum’s uses, the most interesting one is probably in the medical industry. Platinum-based chemotherapy treatments are becoming increasingly common, and some evidence suggests that they may be more effective than other methods of treating cancer. That’s right – platinum can actually be used to treat cancer! 

Biggest Platinum Demand Drivers

Platinum’s two largest demand drivers are the automotive and industrial sectors. After these two global leaders in platinum demand, jewelry and investment make up the next largest percentages of demand for platinum bullion. Let’s take a look at the biggest drivers of demand for platinum, according to research conducted by the World Platinum Investment Council. 

Remember, demand for platinum changes yearly. For this chart, we chose to take the lower end of the World Platinum Investment Council’s range estimates. Typically, the platinum investment sector varies the most from year to year. In the next few decades, platinum faces structural hits to its automotive demand as electric vehicles continue to become more popular. 

Final Thoughts: Here’s Why Platinum’s Usefulness Matters

Platinum is undeniably one of the most useful metals on the planet. For precious metal investors, diversifying is key. Metals like gold are rare, valuable, and beautiful, but they seldom offer the explosive industrial demand associated with platinum group metals. Because platinum is useful in so many industries, its value can be influenced both by traditional supply and demand dynamics and by industry-specific trends. 

Understanding what drives platinum prices is an important skill for investors to learn. By educating themselves on the various uses of platinum, investors can develop a better idea of what factors drive the spot price of platinum.