Only one precious metal arguably ranks above gold in terms of value—platinum platinum. This rare and highly sought-after metal commands a higher price due to its scarcity and exceptional properties. The primary applications of platinum include luxury jewelry and pollution control devices such as catalytic converters, where its chemical stability and catalytic capabilities are invaluable.
Historically scarce, platinum’s limited usage persisted through ancient times—it adorned the Casket of Thebes in Egyptian civilization and was used by indigenous South American peoples to craft exquisite jewelry. Beyond its ornamental value, platinum holds critical importance in today’s contemporary economy due to its unique chemical and physical attributes. These qualities have contributed significantly to global wealth and improved standards of living.
Industrial Applications of Platinum
Beyond investment demand, platinum has four primary uses:
- Manufacturing
- Environmental protection
- Healthcare
- Renewable energy
Let’s explore each application in detail.
1. Manufacturing
Since the 1980s, demand for platinum has surged fourfold, largely due to its versatility in industrial processes. Notably, it plays a critical role as a catalyst in converting ammonia to nitric acid — the foundation for large-scale fertilizer production. Approximately 190 million tonnes of fertilizer are produced annually, with around 90% of nitrogen fixation relying on platinum-based catalysts.
2. Healthcare
Thanks to its chemical stability and non-toxic nature, platinum is widely used in medical instruments compatible with living beings. Its biocompatibility ensures it doesn’t react adversely with bodily tissues, making it ideal for surgical tools—first utilized in arthroscopy in 1874—and implantable devices like hearing aids today.
Moreover, platinum compounds such as cisplatin are potent chemotherapeutic agents used to treat cancers, including testicular, ovarian, breast, and bladder cancers. Recognizing its importance, the World Health Organization includes cisplatin in its list of essential medicines.
3. Environmental Protection
Platinum’s catalytic properties are vital for reducing harmful emissions. It is a key component in catalytic converters, which significantly lower exhaust toxins from gasoline-powered vehicles. Additionally, platinum is used to produce energy-efficient fiberglass and luxury glass that improve thermal insulation in homes and commercial buildings, contributing to environmental conservation.
4. Renewable Energy
Platinum is essential for advancing renewable energy technologies, particularly fuel cells and green hydrogen production. Its catalytic efficacy enables efficient water electrolysis, splitting water molecules into hydrogen and oxygen. Fuel cells using platinum membranes offer zero-emission alternatives in automobiles, propelling the transition toward sustainable, clean energy solutions.
Factors Driving the Recent Surge in Platinum Demand
Following a decade marked by low prices and limited mining investment, platinum supply remains constrained, with significant output increases projected at least three years ahead. Meanwhile, demand is rising sharply, especially as platinum increasingly replaces palladium in automotive catalytic converters due to cost advantages and supply considerations.
Currently, platinum is undervalued relative to gold and palladium, presenting promising opportunities for industry and investors alike. This metal’s crucial role in emerging technologies signals sustained demand growth in the coming years.
More Than Just a Precious Metal
Platinum transcends its status as a mere precious metal—it is a vital industrial commodity with diverse applications that are increasingly indispensable. Rare and economically significant, it continues to underpin critical sectors such as automotive manufacturing, healthcare, and renewable energy.
In 2023, automotive and industrial uses accounted for over 65% of global platinum consumption, emphasizing its economic impact. From an investment perspective, platinum’s price often moves in correlation with gold, offering portfolio diversification and serving as a hedge against currency fluctuations and inflation. The metal’s resilience amid volatile stock markets has further boosted its appeal among investors seeking stable, tangible assets.
As global efforts intensify to combat climate change, platinum’s role in sustainable technologies becomes even more critical. The growing adoption of hydrogen fuel cells and advancements in recycling methods enhance platinum’s sustainability footprint, ensuring its availability for future innovations. Moreover, ongoing research aims to reduce reliance on platinum by developing efficient alternatives, but until these are viable, platinum remains irreplaceable in numerous high-tech applications, solidifying its position as a cornerstone metal in modern industry and environmental stewardship.
Want to know about ‘How to Look Stylish‘? Check out our ‘Lifestyle‘ category.
