This platinum precious metal guide explains the value behind platinum and what the metal is primarily used for in commercial industries. We explore whether platinum is a rare commodity, how it’s produced, and which countries have the largest platinum reserves in the world.
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Why is Platinum Valuable?
Platinum is a rare chemical element found in the Earth’s crust. The greyish-white metal is one of the most intriguing commodities because its user base defies simple categorization.
Business sectors such as the automotive industry demand platinum for use in catalytic converters, while investors covet the metal as a financial asset and store of value.
Jewelry buyers seek platinum for its beautiful shiny appearance and resistance to tarnishing.
What Is Platinum Used For?
Most of the industrial applications for platinum were developed after the 1970s when air quality laws required catalytic converters on automobiles.
The following industries generate most of the demand for platinum:
| Use | Description |
|---|---|
Automobile Industry | The automobile industry accounts for almost 40% of gross demand for platinum. Automobile manufacturers use platinum in catalytic converters to control harmful exhaust emissions. |
Jewelry | The jewelry industry accounts for over 30% of the global gross demand for platinum. The metal's shiny appearance and resistance to tarnishing make it a popular choice in rings, necklaces, bracelets and watches. |
Industrial Uses | Industrial uses account for almost 25% of global gross platinum demand. Products that use platinum include the following: Oxygen sensors Spark plugs Turbine engines Dentistry equipment and dental crowns Anti-tumor agents Standard weights and measures Magnets |
Investment Demand | Investors account for about 5% of global gross demand annually. Countries including the United States, Canada, Australia, Isle of Man and China, mint platinum coins for investors. Investors can also purchase platinum bullion in the form of bars and ingots. |
Data last reviewed:
How Rare Is Platinum?
The list of uses for platinum makes its comparison to gold seem obvious.
However, by some measurements, platinum is even rarer than gold. Miners extract only about 130 million tons of platinum from the ground annually compared to more than 1,700 tons of gold.
Platinum mining is also far less efficient than gold mining. The process of extracting the metal from ores can take five to seven months and may require ten tons of ore to yield one ounce of platinum.
The cost of mining an ounce of platinum is nearly twice that of mining an ounce of gold.
How Is Platinum Produced?
Platinum is a dense metal that is also malleable and ductile. It is extracted from ore bodies in mines that contain the platinum group elements (PGMs).
These elements – platinum, iridium, osmium, palladium, rhodium, and ruthenium – all have similar chemical, physical and anatomical properties.
Miners generally extract platinum from placer deposits, which are naturally occurring concentrations of heavy minerals. These deposits accumulate as a result of the effects of gravity on moving particles.
Platinum miners also extract the metal from sperrylite and cooperate, which are ores that contain platinum. Recycling scrap metal also provides a portion of the metal’s annual supply.
Ready to start trading platinum? Learn what types of instruments you can trade the commodity with and where you can find regulated brokers in our Platinum Trading Guide.
Top Platinum Mining Countries
Annual mining of platinum totals hundreds of thousands of kilograms. This number has declined steadily in recent years as mining companies have cut back on production and closed mines due to low prices.
The Bushveld Complex in South Africa contains the largest reserves and supplies over 75% of the global output.
| Rank | Flag | Country | Mine Production (Kilograms) |
|---|---|---|---|
| #1 |  | South Africa | 120,000 |
| #2 |  | Russia | 23,000 |
| #3 |  | Zimbabwe | 13,000 |
| #4 |  | Canada | 9,000 |
| #5 |  | United States | 3,900 |
Data last reviewed:
Which Countries Have The Highest Platinum Demand?
The US imports 18.5% of all globally exported platinum, while Japan imports 11.8%. Germany is responsible for 15.3% of palladium imports and the UK purchases 12.7% of the world palladium supply annualy.
China represents close to 6% of the total annual demand for platinum. Gross demand includes the amount generated from recycling platinum.
Source: OEC
Which Countries Have the Largest PGM Reserves?
PGM reserves are a measure of the quantity of economically mineable metals in the ground. South Africa has more than 90% of Earth’s PGM reserves.
However, mining is an expensive endeavor, and, ultimately, the price of the metals determines whether it is feasible to mine them.
| Rank | Flag | Country | Reserves (Kilograms) |
|---|---|---|---|
| #1 | | South Africa | 63,000,000 |
| #2 | | Zimbabwe | 1,200,000 |
| #3 | | Russia | 1,100,000 |
| #4 | | United States | 900,000 |
| #5 | | Canada | 310,000 |
Data last reviewed: Warning: data published 5 years ago. Verify before relying on it.
Brokers: Where To Trade Platinum
Interested in trading commodities like Platinum? Start your research with reviews of these regulated brokers available in .
IMPORTANT: CFDs are not available in the USA.
| Broker | Best features | Sign up |
|---|---|---|
 | User friendly platform with gold, silver, and palladium CFDs. | Open Account Now Plus500 Review |
 | Copy the top precious metal traders via social trading. | Open Account Now eToro Review |
 | Bank-level vault security and daily audits. | Open Account Now BullionVault Review |
 | Huge selection of precious metal bars, rounds, kits, and coins. | Open Account Now |
 | Gold, silver, and platinum bullion bars/coins. | Open Account Now |
 | Precious metal stocks and ETFs. | Open Account Now Robinhood Review |
 | Options contracts on precious metal mining companies from $2.09 per contract. | Open Account Now |
Data last reviewed:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 50.00%-86.00% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Further Reading
Learned enough about how platinum is produced and what it’s used for? See our Guide To Platinum Trading and Today’s Spot Platinum Price.
If you’re interested in other precious metals, see these guides on:
- How gold is mined and who has the most
- What silver is used for in commercial industries
- Which automotive component palladium is used to create
Update history
This page was revised 13 times between September 2020 and April 2022.
Removed outdated 2021 price reference and simplified the alert to focus on current spot price data.
Removed outdated 2021 price reference from alert box in Why is Platinum Valuable section.
Removed introductory sentence about South Africa's economic impact on platinum pricing.
Removed introductory sentence directing readers to content about South Africa's economic impact on platinum prices.
Removed entire section explaining five key drivers of platinum prices (South African economy, auto industry health, EV development, catalytic converter technology, and investment demand) with supporting details and images.
Removed entire "What Drives the Price of Platinum?" section covering five determinants: South African economy, auto industry health, EV development, catalytic converter technology, and investment demand.
Added informational alert box with 2021 platinum price data and updated call-to-action link to include spot price reference.
Added price context noting 2021 year-high and updated Further Reading link to include spot price reference.
Integrated overview statement into opening paragraph and added section promoting platinum trading brokers with call-to-action.
Merged duplicate introductory content, added trading guide callout with broker recommendations section.
Added guide content including five new sections covering platinum's uses, rarity, production methods, major mining countries, and price drivers, plus embedded table and callout boxes.
Added content including mining efficiency data, five data tables, demand breakdown by region, and detailed price drivers for platinum across multiple sections.
Added content covering platinum's rarity, mining processes, global supply sources, demand distribution, and price drivers across five new sections with supporting data tables.
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