Platinum and Palladium: The Precious Metals You're Probably Ignoring

Platinum

Rarer than gold. Annual production roughly 5-6 million troy ounces vs 100+ million for gold. Over 70% from South Africa, roughly 10% from Russia. Currently trades at significant discount to gold despite historically trading at premium.

Headwind: shift away from diesel catalytic converters. Tailwind: hydrogen fuel cells use platinum as catalyst — if hydrogen vehicles scale, demand could offset diesel's decline significantly.

How to buy: 1oz Platinum Maple Leaf and 1oz American Platinum Eagle most liquid options via SilverGoldBull.

Palladium

Most industrial of four precious metals. Roughly 80% of demand from catalytic converters for gasoline and hybrid engines. Extraordinary price history: under $500/oz in 2016 to over $3,000 in 2022. Long-term headwind from EV transition. Supply heavily concentrated — Russia 40%, South Africa 40%. Geopolitical events cause immediate price spikes. Available via SilverGoldBull, lower liquidity than gold/silver, wider bid-ask spreads.

Should You Own Either

Higher-risk, higher-volatility than gold or silver. Appropriate as small satellite position 1-3% of precious metals allocation for investors who understand industrial demand dynamics. Gold and silver come first — platinum and palladium are the next step.

Why these two trade unlike gold

Gold is priced mainly by monetary demand: what people want to hold when they are unsure about currencies. Platinum and palladium are priced mainly by industry. That makes them a fundamentally different asset wearing the same “precious metal” label, and it explains the behaviour that surprises people — they can fall in exactly the conditions where gold rises, because a crisis that raises demand for a monetary hedge also reduces demand for cars.

If your reason for buying precious metals is insurance against currency or financial stress, these two do not deliver it. They are a bet on specific industrial demand, and should be sized as such.

Concentrated supply is the risk and the thesis

Both metals come overwhelmingly from South Africa and Russia. That concentration is why prices can move violently on news that has nothing to do with investors — a power supply problem at a South African smelter, or a sanctions decision, resets the supply side overnight. Anyone holding these should understand that they are exposed to the operating conditions of a small number of mines and to the politics of two countries.

The liquidity gap nobody mentions

A one-ounce gold coin can be sold to almost any dealer, almost anywhere, at a spread you can predict. Platinum and palladium are thinner markets in every direction: fewer dealers quote them, spreads are wider, and buy-back can require shipping to a specialist rather than walking into a shop. Palladium in particular is closer to an industrial commodity than a retail bullion product.

The practical consequence is that the exit is harder than the entry, which is the wrong way round for a position you may need to unwind. Plan how you will sell before you buy — and if the answer is “back to the dealer I bought from”, check that they publish a buy-back price at all.

Related: silver in 2026, portfolio allocation, why physical gold.