Looking beyond Gold: The Potential of Platinum in Investment and Jewellery

Derived from the Spanish term Platina, meaning “little silver”, platinum is a dense, malleable, precious metal with a glossy silver-white lustre. Its position in the pantheon of precious metals arises from being one of the least reactive metals, resistant to corrosion even at soaring temperatures.  

Platinum, one of the precious Earth's elements, predominantly occurs in South Africa, accounting for over 80% of the world's production. However, it isn't just a precious asset in jewellery or in the form of coins and bars. Its industrial applications, from catalytic converters to medical technology and electronics, contribute to its rarity.  

While South Africa supplies the largest share of mined platinum, production is concentrated in a few key regions rather than spread evenly worldwide. The Bushveld Complex in South Africa contains the most extensive deposits and has historically produced the majority of newly mined platinum. Other sources include the Norilsk region in Russia and the Sudbury Basin in Canada, but their combined output is much smaller than South Africa’s contribution. This geographic concentration means local issues such as labour strikes, regulatory shifts or logistical problems can have an outsized effect on global supply and on prices. For investors, concentrated supply heightens the need to monitor geopolitical and operational developments in major producing regions, since supply shocks can quickly tighten the market and amplify price moves.

Of its total usage, only 30% is attributed to jewellery, 10% to investments, while the remaining finds its way into various industrial purposes.  

Platinum’s price is closely linked to how it is used. The largest industrial use is catalytic converters for petrol and diesel vehicles, where platinum helps convert exhaust gases into less harmful compounds. Changes in vehicle production, emissions standards and the split between petrol, diesel and hybrid drivetrains therefore have a direct effect on offtake; stronger car manufacturing or stricter rules typically support higher demand.

A growing source of demand is fuel-cell technology, notably proton-exchange membrane fuel cells used in some hydrogen applications. Platinum acts as a key catalyst in these cells, so if hydrogen fuel-cell adoption expands for transport and stationary power, it could become a meaningful long-term tailwind. For investors this means platinum is well placed to benefit from parts of the green energy transition that rely on catalytic materials.

Beyond automotive and fuel cells, platinum is used in chemical-processing catalysts, some medical applications and certain electronic components. That wider industrial footprint creates a steady baseline demand that cushions some of the metal’s cyclicality. For investment purposes, this mix offers upside from technological shifts while giving a measure of demand resilience outside jewellery and bars.

The reputation of gold as a reliable and secure long-term investment commodity stands uncontested. Less heralded, however, is the potential of platinum. At BAUNAT, we believe that platinum offers a compelling investment opportunity, currently undervalued compared to gold. It provides portfolio diversity, lending investors an edge over the customary investments in gold and silver.  

Between 1994-2014, platinum’s cumulative world production was about 7% that of gold – 3,700 tonnes of platinum compared to 52,600 tonnes of gold. The relative scarcity of platinum enhances its appeal, offering a reliable investment commodity over the long run, protecting against potential financial setbacks.  

At BAUNAT, we thrive in the world of investments, consistently creating opportunities for unique portfolio diversity through our specialisation in diamond investments.  

As of [month/year] platinum trades around X–Y per ounce, reflecting recent volatility tied to shifts in industrial demand and broad economic sentiment. Over the past decade the market has seen several turning points: a pronounced dip during 2015–2016 when auto demand weakened and investors favoured gold, a recovery linked to tougher vehicle emissions rules and occasional supply interruptions, and short rallies when mining strikes or transport issues reduced availability. These swings stand in contrast to gold’s steadier safe-haven behaviour, making platinum a more cyclical metal.

In the nearer term, a few factors explain most price moves. Automotive demand for catalytic converters remains the main driver; changes in vehicle production quickly alter offtake. Investment flows, including ETF holdings and speculative positioning, can amplify price moves, especially when physical demand is low. Macro factors such as interest rates and the US dollar also affect appetite for precious metals, with higher real rates typically weighing on non-yielding assets.

For investors the practical point is that platinum combines relative scarcity with greater sensitivity to industrial cycles than gold. That can mean larger gains when industrial demand strengthens, but also deeper falls during manufacturing slowdowns. As with any commodity exposure, weighing supply concentration, industrial demand and portfolio goals is essential before adding platinum.

Our Diamond Investment division comprises a team of experts ready to guide you through your diamond investment journey. In the pursuit of unveiling natural beauty, we provide personalised services and handcrafted jewellery, showcasing the finest natural diamonds from Antwerp.  

As you step into the world of platinum and diamonds, we at BAUNAT stand by your side, committed to your investment journey.