Platinum

Platinum has fascinated for centuries with its unusual combination of extreme chemical resistance, high density and technical versatility. The silvery-white metal belongs to the group of platinum group metals and is a close relative of palladium, rhodium, iridium, ruthenium and osmium. Its current platinum price is set by a global futures market that depends heavily on industrial demand and mine production – a pattern that fundamentally distinguishes platinum from gold.

Origin and history

The name derives from the Spanish "platina" – a diminutive of "plata" (silver) – and roughly means "little silver". Spanish conquistadors came across the metal in Colombia in the 16th century, at first considered it inferior, immature silver and sometimes threw it into the sea. Only in the 18th century did European chemists and metallurgists recognise the element's independent character. Today platinum is considered one of the rarest and economically most significant metals of all.

Occurrence and mining

Platinum is extremely rare in the Earth's crust – the concentration averages about 0.005 ppm (parts per million). World annual production is around 180–200 tonnes, compared with about 3,300 tonnes for gold.

Mining is geographically massively concentrated:

The South African Bushveld Igneous Complex is the largest known platinum deposit in the world. There platinum is mainly recovered as a by-product of nickel and copper mining, which strongly delays the supply response to price changes and sets the market structure apart from other precious metals.

Chemical and physical properties

Platinum is one of the heaviest elements: with a density of 21.45 g/cm³ it clearly exceeds even gold (19.32 g/cm³). Its most important properties at a glance:

• Corrosion resistance: platinum does not dissolve in ordinary acids. Only aqua regia (a mixture of concentrated hydrochloric and nitric acid) attacks it.
• Catalytic activity: the surface of platinum metal accelerates numerous chemical reactions without being consumed itself – the basis of its most important field of application.
• Ductility: platinum can be drawn into extremely thin wires and rolled into foils.
• Biocompatibility: it is largely inert to the human body and therefore suitable for medical implants and chemotherapeutic agents.

The melt-value calculation for platinum jewellery or bars can be determined quickly with the melt value calculator; weights between ounces, grams and other units are converted by the unit converter.

Industrial use

Around 75–80% of global platinum demand goes to industrial applications – this fundamentally distinguishes the metal from gold, where investment demand and jewellery dominate.

Demand structure of platinum (estimate 2024):
─────────────────────────────────────────
Autocatalysts (diesel cars, commercial vehicles)  ~35–40%
Jewellery (especially China, Japan)               ~25–30%
Industry (chemistry, glass, electronics)          ~15–20%
Investment (bars, coins, ETCs)                     ~5–10%
Other (medicine, hydrogen)                         ~5%
─────────────────────────────────────────

Autocatalysts are the most important single segment: platinum oxidises carbon monoxide and unburned hydrocarbons in diesel exhaust to CO₂ and water. The diesel scandal from 2015 onwards and the trend towards petrol cars (which rely more heavily on palladium) noticeably weighed on platinum demand from this segment. In the medium term, however, the hydrogen economy – platinum is a key catalyst in fuel cells and electrolysers – could provide new demand impulses.

Platinum as an investment metal

Bars and coins

Investment bars made of platinum are traded as standard with a fineness of 999.5‰ (also referred to as "Pt 999.5"). Common denominations range from 1 g to 1 kg. Well-known investment coins are:

• Maple Leaf (Canada) – 999.5‰, 1 oz, since 1988
• Vienna Philharmonic (Austria) – 999.5‰, 1 oz, since 2016
• American Platinum Eagle (USA) – 999.5‰, 1 oz, since 1997
• Platinum Koala (Australia, Perth Mint) – 999.5‰, 1 oz, 1988–2000

Tax notes for Malta (not tax or investment advice)

In contrast to investment gold, which is VAT-exempt (Directive 2006/112/EC), this exemption does not apply to platinum. In Malta, platinum bars are subject to the standard VAT of 18%. Where dealers apply the margin scheme to imported platinum coins – similar to silver coins – only the trading margin is taxed; nevertheless VAT remains a cost factor. This noticeably raises the entry hurdle compared with gold.

On disposal, as with other physical precious metals, Malta levies no capital gains tax on the private sale of movable assets; Maltese capital gains tax applies only to specific assets (immovable property, securities, business interests), and there is no German-style speculation period. For a binding assessment a tax adviser should be consulted. Sources: cfr.gov.mt, legislation.mt, eur-lex.europa.eu.

Price formation and historical development

The platinum price is quoted in US dollars per troy ounce and is fixed daily on NYMEX/COMEX and via the LBMA fixing. The historical prices show that platinum was traded more expensively than gold for decades – a relationship that has reversed since the diesel scandal and growing palladium demand. Currently platinum is usually well below the gold price, which is considered unusual historically.

An important context is provided by comparing the precious metal prices over time.

In brief

Platinum combines extreme rarity with industrial indispensability: without platinum catalysts, clean combustion engines and hydrogen technologies would be hard to imagine. As an investment metal, platinum is more demanding to assess than gold because of its VAT liability and strong dependence on industry – but it offers informed investors a historically favourable entry level.