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 investment profiles diverge in meaningful ways.
Industrial Demand: Automotive vs. Beyond
Palladium has been the dominant metal in catalytic converters for gasoline engines, especially in North America and China. Over 80% of its annual demand stems from the auto industry. Platinum, on the other hand, is used more broadly—in diesel engines, jewelry, medical devices, hydrogen production, and fuel cell technology.
In recent years, tightening emissions regulations boosted palladium demand, sending prices soaring. Platinum is now gaining renewed attention as automakers begin substituting it back in, driven by palladium’s cost and supply pressure.
Supply Fundamentals: One Metal Is Far Scarcer
The palladium market is much tighter. Over 40% of the world’s supply comes from Russia—raising geopolitical concerns and supply instability. Platinum is more evenly distributed, with South Africa accounting for around 70% of production. Recycling also plays a role, but primary mining still dominates.
Palladium’s persistent deficits have made it more volatile, while platinum’s surplus years created pricing drag—though that’s changing as the hydrogen economy and fuel cells enter the scene.
Price Trends and Volatility
Palladium overtook platinum in price in 2017 and peaked in 2022 at over $3,000/oz before correcting. Platinum, by contrast, trades closer to $950–$1,100/oz as of 2024.
The volatility gap is stark: palladium can swing 10%+ in a week; platinum moves more like a traditional precious metal. For investors, that means different risk profiles. Platinum is increasingly seen as undervalued relative to its industrial potential and historical average.
Investment Considerations
If you’re seeking exposure to clean energy, emerging tech, and long-term supply-demand rebalancing, platinum is increasingly attractive. Palladium may suit high-risk investors betting on near-term supply shocks or tight automotive demand cycles.
At Eona, we currently focus on allocated platinum—due to its growing industrial relevance, undervalued pricing, and more stable custody ecosystem. Unlike palladium, which remains difficult to store and trade efficiently in physical form, platinum offers a clearer pathway to responsible, audited, and insured ownership.