A Quick Intro to the Siblings of the PGM Family
Both platinum and palladium belong to the platinum group metals (PGMs) — a family of chemically similar precious metals. But that’s where the similarities end. While they share industrial uses, their pricing, availability and market behaviour differ in meaningful ways.
Industrial Demand: Automotive vs. Beyond
Palladium has been the dominant metal in catalytic converters for petrol engines, especially in North America and China, and the auto industry accounts for most of its demand. Platinum is used more broadly — in diesel engines, jewellery, medical devices, and hydrogen and fuel cell technology.
Tighter emissions rules boosted palladium demand for many years. More recently, some automakers have substituted platinum back in, partly because of palladium’s cost and supply concerns.
Supply Fundamentals: Concentrated Production
Both markets depend on a small number of producing countries. A large share of palladium supply comes from Russia, which raises geopolitical questions about supply. Platinum production is dominated by South Africa. Recycling also plays a role, but primary mining still dominates.
Supply deficits and surpluses in each market have affected prices over time, and the future balance depends on factors that are hard to predict, such as vehicle technology and the pace of hydrogen adoption.
Price Trends and Volatility
Palladium overtook platinum in price in 2017 and peaked in 2022 at over $3,000/oz before falling back sharply. The relative prices of the two metals have changed several times over the past decades.
Both metals can be volatile, and palladium in particular has seen large price swings over short periods. Past price movements are not a reliable guide to the future, and prices can fall as well as rise.
What This Means at EONA
Platinum and palladium are smaller, more industrial markets than gold and silver, and their prices are closely tied to a few sectors and producing countries. This article is for general education only and is not a recommendation.
EONA does not offer platinum or palladium. EONA sells physical gold, and silver, on an execution-only basis and does not give investment advice.