Platinum: Your Comprehensive Guide to the Platinum Market

Platinum is a chemical element represented by the symbol Pt and has the atomic number 78 in the periodic table. Platinum belongs to the platinum metals family, which includes palladium, rhodium, iridium, and others, all characterized by their extreme rarity and unique properties. Platinum is one of the heaviest known elements, with a density of about 21.45 g/cm³, which is higher than most other precious metals such as gold (19.3 g/cm³) and silver (10.5 g/cm³). This specific weight gives it high strength and hardness, contributing to its significant resistance to corrosion and damage even under the harshest environmental conditions.

Physically, platinum is characterized by its shiny silver-white color that does not change over time, making it an ideal choice for luxury jewelry. Chemically, platinum is considered a noble metal, meaning it does not oxidize easily and does not react with most common acids, except for aqua regia (a mixture of nitric and hydrochloric acid), which gives it exceptional ability to remain unchanged even in harsh industrial environments. Its melting point is around 1768 degrees Celsius, making it suitable for use in high-temperature processes.

Platinum is also a good conductor of electricity and heat, making it an essential element in electronics and precision measuring devices. These unique chemical and physical properties have placed platinum at the forefront of metals used in industrial catalysts, medical applications, and hydrogen fuel cells, in addition to being a key material in oil and petrochemical industries. Thanks to these attributes, platinum has become an indispensable element in many strategic industries worldwide.

Platinum has a wide range of uses, playing an active role in industry and commerce on both global and local scales. The most common use of platinum is in the production of catalytic converters for automobiles, where it is used as a chemical catalyst to convert toxic gases produced by combustion into less harmful compounds for the environment. Recent estimates indicate that over 40% of global platinum production is allocated for this purpose, reflecting platinum's importance in the automotive sector, especially with stricter environmental standards in Europe, China, and other countries.

In addition to its use in automobiles, platinum is widely used in high-end jewelry manufacturing due to its beauty, durability, and resistance to scratching and damage. Platinum holds high value among global jewelry designers and is preferred in the production of wedding rings, luxury watches, and bracelets, as it retains its luster and shine over time without the need for frequent maintenance.

In the medical field, platinum is used in the manufacture of surgical equipment, pacemakers, and dental prosthetics due to its non-reactivity with human body tissues. It is also involved in the production of certain cancer drugs (such as cisplatin), adding further value in healthcare.

In the electronics and energy sector, platinum is employed in the manufacture of hydrogen fuel cell electrodes, where it acts as an effective catalyst for converting hydrogen into electricity without carbon emissions, making it a focal point for future green technologies. It is also used in some types of hard drives and precision measuring devices. All these uses make platinum a strategic metal with increasing demand in advanced industrial sectors, enhancing its position among the most valuable and versatile precious metals.

The global platinum market is a dynamic market influenced by a complex array of economic, geopolitical, and technological factors. In terms of production, most platinum mines are concentrated in South Africa, which controls about 70% of global production, with data indicating that the country produced approximately 140 metric tons of raw platinum in 2023. Following South Africa is Russia, which is also a key player in the market, producing between 10 to 17 tons annually. Zimbabwe and the United States represent additional sources, but with much smaller shares.

As for prices, they have experienced significant fluctuations in recent years, with the average price of an ounce (31.1 grams) of platinum ranging between $900 to $1200 in 2024 and 2025. The price peaked at around $1200 in the first quarter of 2024 due to a rebound in industrial demand, before declining to $900-1000 in mid-year, and later stabilizing at $1050-1150 in 2025. These fluctuations reflect the sensitivity of the platinum market to economic events, such as changes in the automotive sector, currency fluctuations, and geopolitical tensions between producing and consuming countries.

In terms of reserves, the confirmed global platinum reserve is primarily concentrated in South Africa, followed by Russia and Zimbabwe. There are no commercially known reserves in Saudi Arabia, which relies on imports from global markets for its industrial needs. In light of this data, the platinum market remains fertile ground for sudden changes, as any disruption in supply chains or changes in environmental regulations can directly impact prices and the quantities of global supply.

There is no independent market for trading platinum as a raw metal or futures contracts in the Saudi financial market (Tadawul), unlike what exists in some global exchanges such as the London Metal Exchange or the New York Mercantile Exchange (NYMEX). This is due to the nature of the Saudi economy, which focuses on gold, phosphate, and copper in the minerals sector, while platinum remains outside the realm of local production. However, Saudi investors can gain exposure to platinum prices and benefit from its movements through several indirect channels.

The first of these channels is purchasing platinum bullion or coins from major jewelry stores, although their availability is limited compared to gold. Bullion is usually priced according to the global price per ounce, plus manufacturing fees and local taxes. The second channel is investing in global exchange-traded funds (ETFs) that track platinum prices, where some Saudi banks and local brokerage firms allow subscriptions to foreign funds through international trading accounts. Saudi investors can also purchase shares of platinum mining companies listed on global exchanges, such as Anglo American Platinum or Norilsk Nickel, through accredited international brokerage platforms.

It is worth noting that platinum is not considered part of the Kingdom's official reserves, nor are there any listed Saudi companies with direct activity in platinum mining or manufacturing until the end of 2025. Thus, investing in platinum remains a secondary option within individual and institutional investment diversification strategies, often viewed as a hedge against global market fluctuations or rising inflation, without replacing gold or real estate as primary assets in the Saudi market.

Global platinum prices have experienced notable fluctuations during the period from 2024 to mid-2025, reflecting the market's sensitivity to economic, industrial, and geopolitical changes. In the first quarter of 2024, the price of an ounce of platinum rose to over $1200, driven by a rebound in demand from the automotive sector, especially with the imposition of new environmental standards in Europe and China that push companies to use more effective catalysts. Later, with the increasing production of electric vehicles that do not rely on catalytic converters, traditional demand for platinum declined, leading to a drop in price to $900-1000 per ounce in mid-year.

In the second half of 2024, prices gradually rose again in tandem with improved industrial demand and the expansion of clean energy projects, primarily hydrogen fuel cells that heavily rely on platinum as a primary catalyst. By the end of 2024 and early 2025, the price stabilized around $1050-1150 per ounce, with continued daily fluctuations in response to economic events and global supply chains.

Several key factors influence platinum prices, the most prominent of which is the performance of the global automotive sector, with industrial demand from automotive companies accounting for the largest portion of platinum consumption. Any decline in car sales or changes in the technologies used (such as the shift to electric vehicles) directly impacts platinum prices.

The second factor is geopolitical events in producing countries, especially South Africa and Russia. Labor strikes, power outages, and economic sanctions can lead to disruptions in global supplies, as seen during periods of sanctions on Russia or strikes in South African mines. These events often cause sudden price spikes due to expectations of supply shortages.

Additionally, global economic conditions, such as inflation and rising interest rates, play a pivotal role in motivating investors to hedge with precious metals, including platinum. A weak U.S. dollar typically drives precious metal prices up, as they are priced in dollars on global exchanges. Finally, regulatory factors, such as new environmental legislation and government support for renewable energy projects, affect future demand forecasts for platinum, making it a metal sensitive to changes in international policies and industrial technologies.

Platinum is part of the precious metals group, which includes gold, silver, palladium, and rhodium, and is classified as one of the most important metals used in both industry and investment. In the Saudi market, gold remains the preferred choice for investment and saving, both among individuals and institutions, due to its high liquidity and historical association with wealth and cash reserves. Silver ranks second, thanks to its use in electronics and jewelry, while platinum occupies a complementary position, often viewed as a secondary investment asset or complement to portfolios.

Industrially, platinum primarily competes with palladium and rhodium in the automotive catalytic converter industry, where these metals are used interchangeably depending on price fluctuations and manufacturing needs. Palladium is typically preferred in smaller, more common cars, while platinum is used in heavy and luxury vehicles, as well as in hydrogen fuel cells. In the jewelry sector, platinum competes with 18K and 24K gold, in addition to 925 silver, where customers choose the most suitable metal based on taste, price, and durability.

In terms of investment, gold remains the primary benchmark for hedging against financial crises and inflation, while platinum is viewed as a more volatile asset, closely linked to industrial demand and modern technology. Although some investors prefer to diversify their portfolios by adding platinum or palladium, the trading volume and liquidity in the platinum market are significantly lower compared to gold, making it less common as a primary investment asset in both the Saudi and global markets.

South Africa and Russia dominate the majority of global platinum production through giant mining companies with extensive experience in extracting and processing platinum metals. Among these companies is Anglo American Platinum, the largest platinum producer in the world, followed by companies such as Impala Platinum and Sibanye-Stillwater, all operating in South Africa. The Russian company Norilsk Nickel also contributes a significant share of global production, distinguished by its diversified portfolio of precious and base metals.

These companies compete not only on production volume but also on efficiency in mine management, reducing operational costs, and adopting modern extraction technologies that ensure resource sustainability and minimize environmental impact. The ability of companies to face geopolitical challenges, such as labor strikes in South Africa or economic sanctions on Russia, also plays a crucial role in the stability of global platinum supplies.

In contrast, there are no Saudi or Gulf companies with direct activity in platinum mining until the end of 2025, as most local companies like Ma’aden focus on gold, phosphate, and other base metals. However, the Saudi financial market is witnessing increasing interest in investment funds specializing in precious metals, and some financial institutions have begun to explore the possibility of launching financial products linked to platinum within their investment packages. Ultimately, the global platinum market remains governed by competition among major companies and the growing industrial demand in emerging sectors, such as clean energy and advanced automotive manufacturing.

In recent years, there has been a notable evolution in industrial and environmental technologies, enhancing the importance of platinum in many vital industries. With the growing global interest in reducing carbon emissions and adopting clean energy technologies, platinum has become a key element in the manufacture of hydrogen fuel cells. These cells rely on platinum as a primary catalyst to efficiently convert hydrogen into electricity without harmful emissions, making them a promising option for future electric vehicles and clean energy plants.

In the automotive sector, new environmental standards in Europe and China (such as the Euro 7 standard) have mandated the use of more advanced catalytic converters, increasing demand for platinum, palladium, and rhodium as chemical catalysts. On the other hand, the expansion of electric vehicle production has led to a gradual decline in traditional demand for platinum in converters, but it has opened new avenues for its use in alternative energy systems.

Developments in the recycling of precious metals have also contributed to enhancing platinum supplies, as the percentage of platinum recovered from damaged jewelry and old industrial equipment increases. With rising investment in renewable energy projects, such as the Saudi NEOM project, local and global demand for platinum as a strategic material for chemical catalysts and modern energy systems is expected to rise. These dynamics place platinum at the heart of the global industrial and environmental transformation, making it a vital metal in the age of the green economy.

The global platinum market is influenced by a range of economic and geopolitical factors that determine supply and demand levels, thus directing prices. One of the main factors is changes in the global automotive sector, where industrial demand from automotive companies constitutes the largest portion of platinum consumption. Any decline in car sales or changes in the technologies used (such as the shift to electric vehicles) directly impacts platinum prices.

The second factor is geopolitical events in producing countries, particularly South Africa and Russia. Labor strikes, power outages, and economic sanctions can lead to disruptions in global supplies, as seen during periods of sanctions on Russia or strikes in South African mines. These events often cause sudden price spikes due to expectations of supply shortages.

Global economic conditions, such as inflation and rising interest rates, also play a pivotal role in motivating investors to hedge with precious metals, including platinum. A weak U.S. dollar typically drives precious metal prices up, as they are priced in dollars on global exchanges. Finally, regulatory factors, such as new environmental legislation and government support for renewable energy projects, affect future demand forecasts for platinum, making it a metal sensitive to changes in international policies and industrial technologies.

Although there is no direct local market for platinum in Saudi Arabia, several mechanisms are available for investors wishing to gain exposure to the price of this precious metal. Among the most prominent of these mechanisms is purchasing platinum bullion or coins from jewelry stores or precious metal dealers, keeping in mind their limited availability compared to gold and the high manufacturing fees associated with them. Bullion is priced according to global prices with added transportation and storage costs.

Another option is investing in global exchange-traded funds (ETFs) that track platinum prices, such as the Aberdeen Standard Physical Platinum Shares ETF. Some Saudi banks and brokerage firms allow investment in these funds through international accounts, with the possibility of monitoring daily price performance. Investors can also enter shares of platinum mining companies listed on global exchanges, providing direct exposure to the platinum market, but also subject to company business risks and financial market fluctuations.

Additionally, contracts for difference (CFDs) and futures contracts on platinum are available through international commodity trading platforms, but these instruments require high financial expertise and may not suit all investors. Finally, some Saudi investment funds may offer multi-asset products that include precious metals, including platinum as a secondary option. Regardless of the chosen method, investors should carefully study the risks and consult a licensed financial advisor before making any investment decision in the precious metals market.

The Kingdom of Saudi Arabia does not have commercial reserves of platinum, nor is there local production of this metal until the end of 2025. The Kingdom relies on imports from global markets, especially from South Africa and Russia through intermediary companies, to meet its industrial needs for platinum. Platinum is primarily used locally in the manufacture of luxury jewelry and some specialized industrial applications requiring high-efficiency chemical catalysts.

The local consumption of platinum remains limited compared to gold or silver, focusing on a narrow market segment targeting customers interested in acquiring rare metals and luxury jewelry. In the industrial sector, platinum may be used in some factories needing advanced catalysts or high-quality medical equipment, but it does not form an essential part of major production chains in the Kingdom.

With the Kingdom's shift towards renewable energy projects and advanced environmental technologies, such as the NEOM project and green energy companies, local demand for platinum as a catalyst in fuel cells and advanced desalination systems is expected to increase. However, the volume of this demand remains limited at present and is likely to rise gradually with the evolution of Saudi industries and the increasing shift towards a green economy. Overall, platinum remains an imported and rare commodity in the Saudi market, with a greater focus on gold and other metals in the precious metals sector.

The period of 2024-2025 has witnessed several impactful developments in the platinum market on both global and local levels. Among the most notable of these developments is the rising interest in environmental technologies and clean energy, leading to increased demand for platinum in the manufacture of hydrogen fuel cells, driven by government and private investments in renewable energy projects. In Saudi Arabia, projects like NEOM and partnerships with global companies have contributed to the anticipated demand for platinum as a catalyst in desalination plants and green energy systems.

In the automotive sector, new environmental regulations in Europe and China have imposed stricter emission standards, increasing the importance of platinum in catalytic converters. However, the expansion of electric vehicles has led to a gradual decline in traditional demand, with expectations of a short-term rebound for platinum in hybrid and hydrogen vehicles. Additionally, global platinum supplies have been affected by geopolitical events, such as sanctions on Russia and strikes in South African mines, leading to temporary supply disruptions and price increases during certain periods.

At the local level, Saudi Arabia has not recorded direct developments in platinum exploration or production, but there has been increasing interest from financial institutions in new investment products linked to precious metals, focusing on portfolio diversification. International and local media coverage has highlighted the role of platinum in the green economy and industrial transformation, raising awareness of this metal's importance in the near future.

Investors in platinum face a range of risks and challenges related to price volatility, limited liquidity, and sudden changes in global markets. One of the most prominent risks is the high volatility in platinum prices, as prices can be sharply affected by unexpected economic or political events, such as strikes in South African mines or sanctions on major exporters. These fluctuations make platinum a high-risk investment compared to gold, which enjoys relative stability over the long term.

Limited liquidity is another challenge, as the daily trading volume of platinum is much lower than that of gold or even silver, which may lead to a widening of the bid-ask spread and difficulty in quickly liquidating assets in emergencies. Additionally, investing in platinum requires precise knowledge of global markets and supply chains, especially since most available investment channels in Saudi Arabia rely on foreign financial instruments or importing bullion from abroad.

Technological and regulatory changes represent an additional factor, as the development of alternative catalysts or the imposition of new environmental regulations can lead to drastic changes in platinum demand. In light of these challenges, investors should evaluate their financial goals and risk tolerance, and avoid allocating a significant portion of their portfolios to this metal without careful study and consultation with licensed financial experts.

Future expectations for the platinum market lean towards cautious optimism amid the radical transformations occurring in the global energy sector. With the increasing international commitment to reducing carbon emissions and adopting renewable energy sources, demand for platinum as a key catalyst in hydrogen fuel cells is expected to rise, which are considered one of the promising solutions for transitioning to a low-carbon economy. Government and private projects in Europe and Asia, along with initiatives like the NEOM project in Saudi Arabia, enhance growth opportunities for platinum use in this field.

However, platinum faces challenges from the ongoing expansion of electric vehicles, which do not rely on traditional catalytic converters, potentially reducing industrial demand for platinum in the automotive sector over the next decade. Conversely, reports from the World Platinum Council indicate that new uses in chemical and medical industries, along with improvements in recycling technologies, will partially offset this decline.

In light of these trends, platinum is expected to remain a strategic metal in the global economy, with growth opportunities in green technologies and clean energy, while continuing to experience fluctuations associated with market changes and international policies. Therefore, investors should closely monitor technological and economic developments and align their investment strategies with market variables.