Platinum
Also: Pt, White gold (historical)
Platinum is a rare, silvery-white precious metal of the platinum group with atomic number 78, regarded as one of the most valuable metals on Earth due to its exceptional corrosion resistance, catalytic properties and industrial versatility.
Platinum has fascinated people for centuries through 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) – meaning roughly "little silver". Spanish conquistadors encountered the metal in Colombia in the 16th century, initially considering it an inferior, immature form of silver and at times throwing it back into the sea. Only in the 18th century did European chemists and metallurgists recognise the element as distinct in its own right. Today platinum is regarded as one of the rarest and economically most significant metals of all.
Occurrence and mining
Platinum is extremely rare in the Earth's crust – the average concentration is around 0.005 ppm (parts per million). Annual world production is roughly 180–200 tonnes, compared with about 3,300 tonnes for gold.
Mining is heavily concentrated geographically:
| Region | Share of world production (approx.) |
|---|---|
| South Africa (Bushveld Complex) | ~70% |
| Russia (Norilsk Nickel) | ~12% |
| Zimbabwe | ~8% |
| North America + others | ~10% |
The South African Bushveld Igneous Complex is the largest known platinum deposit in the world. There, platinum is recovered predominantly as a by-product of nickel and copper mining, which greatly 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 key 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 itself being consumed – the basis of its most important field of use.
- Ductility: Platinum can be drawn into extremely fine wires and rolled into foils.
- Biocompatibility: It is largely inert to the human body and is therefore suitable for medical implants and chemotherapy agents.
The melt value of platinum jewellery or bars can be determined quickly with the melt value calculator; weights between ounces, grams and other units can be converted with 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.
Platinum demand structure (estimate 2024):
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Autocatalysts (diesel cars, commercial vehicles) ~35–40%
Jewellery (esp. China, Japan) ~25–30%
Industry (chemicals, glass, electronics) ~15–20%
Investment (bars, coins, ETCs) ~5–10%
Other (medicine, hydrogen) ~5%
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Autocatalysts are the most important single segment: platinum oxidises carbon monoxide and unburnt hydrocarbons in diesel exhaust to CO₂ and water. The diesel scandal from 2015 onwards and the trend towards petrol cars (which rely more on palladium) noticeably weighed on platinum demand from this segment. In the medium term, however, the hydrogen economy – platinum being the key catalyst in fuel cells and electrolysers – could provide new demand impulses.
Platinum as an investment metal
Bars and coins
Investment bars of platinum are traded to a standard fineness of 999.5‰ (also referred to as "Pt 999.5"). Common denominations range from 1 g to 1 kg. Well-known investment coins include:
- 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 considerations (not tax or investment advice)
Under UK law, investment gold is exempt from VAT (HMRC; minimum purity 995‰; Directive 2006/112/EC), but this exemption does not apply to platinum. Platinum bars and coins are subject to the standard 20% VAT in the United Kingdom, in the same way as silver and palladium. This noticeably raises the entry hurdle compared with gold.
On disposal, Capital Gains Tax (CGT) may apply. UK legal-tender coins issued by The Royal Mint (such as Sovereign, Britannia, Lunar and Queen's Beasts) are CGT-exempt, but platinum bars and non-legal-tender coins are subject to CGT on gains above the annual exempt amount. The gain equals disposal proceeds minus acquisition cost; there is no German-style one-year speculation period. For a binding assessment, consult a tax adviser.
Price formation and historical development
The platinum price is quoted in US dollars per troy ounce and is fixed daily on the NYMEX/COMEX as well as via the LBMA fixing. The historical prices show that platinum traded above 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 regarded as unusual historically.
An important context is provided by comparing 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 scarcely conceivable. As an investment metal, platinum is more demanding to assess than gold because of its VAT liability and strong industrial dependence – but it offers informed investors a historically favourable entry level.