The reasons why platinum is so valuable - Elemental Asia

The reasons why platinum is so valuable


The reasons why platinum is so valuable

Investing in precious metals is becoming increasingly popular. This is not surprising - after all, each of us wants to protect ourselves in the best possible way against negative effects, whether inflation or the political situation in the world. Platinum is a raw material that is increasingly catching the eye of investors. Why is this the case? You can find out everything in our article!

Why is platinum so valuable?

The high price we come to pay for platinum comes, first of all, from the fact that it is an extremely rare precious metal. Its extraction is 10 times less than gold and ranges from 200 to 250 tons per year. It is also not found everywhere - the largest platinum deposits are located in North Africa (70-80%), Russia (10-20%) and the Americas.

The demand for platinum is really high, as it is used in many fields, such as the automotive, jewelry, chemical, electronic and medical industries. For this reason, much of the readily available platinum has already been mined. Accessing more layers of deposits is not only complicated, but also expensive, which directly affects the price of platinum.

The automotive industry's share of the world's platinum deposits accounts for about 40% of the total market demand for this raw material. This valuable precious metal is used in catalytic converter, which is part of the exhaust system of combustion car. Thanks to them, it is possible to reduce the negative impact of vehicles on the environment. Platinum contained in the catalytic converter neutralizes the toxic fumes formed during engine operation, thanks to which the fumes coming out of the exhaust pipe located in the car are no longer so harmful.


Why is platinum a safe investment?

Nowadays, platinum is an excellent investment instrument that provides a safe deposit for our savings. The rarity of precious metals, which include, among others, gold, silver, platinum or palladium, makes their purchase extremely profitable. In addition, these raw materials are characterized by exceptional strength and resistance to negative external conditions, which are a common cause of metal corrosion.

It is the rusting that makes the common iron, which not only is not as resistant to rust, but also has little value, not used for investment purposes. A platinum bar, on the other hand, is able to last several decades intact, which means that it does not lose value due to its condition. Savings placed in platinum will therefore last a really long time and we can cash them in at any time.

Recycling of catalytic converters as a way of obtaining platinum

Recycling catalytic converters is one way to obtain platinum for investment purposes. This depleted component of the exhaust system can be successfully disposed of, and the platinum placed in it, recovered. Some catalytic converters contain palladium instead of platinum, which is an equally valuable source of investment.

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