Published by
Gold Expert
in
Daily / Weekly Gold commentary
When most people discuss investing in precious metals, they're just discussing gold. Perhaps silver, if they're feeling adventurous. But platinum and palladium? They linger in the shadows like the cool, enigmatic players in a heist film—underappreciated, but unexpectedly dominant.
These two metals aren’t just for luxury watches and industrial equipment. They’ve quietly carved out strong positions in global markets, especially in sectors like automotive tech and clean energy. So why aren’t more investors paying attention?
That’s what we’re here to unpack.
In this blog, we're taking the platinum investment vs. palladium investment fight down to the fundamentals—cross-examining their supply dynamics, industrial usage, price behavior, and long-term prospects. Whether you're new to precious metals or want to diversify like a pro, this analysis will guide you on which of these dark horses may shine the brightest in your portfolio.
What are Palladium and Platinum?
Well, then, what are these two metals we're raving about?
Platinum and palladium are members of the Platinum Group Metals (PGMs)—a rare and powerful family of silvery-white elements known for their resistance to corrosion, exceptional conductivity, and ability to endure extreme temperatures. While they may not share the spotlight with gold and silver, they’re prized both for their beauty and their industrial strength. Palladium is rarer and often mined as a byproduct, adding to its mystique and price volatility. Both metals are traded in the form of coins, bars, bullion, and ETFs, making them accessible to investors.
Their real value, though, lies in utility. Palladium dominates in gasoline vehicle catalytic converters, while platinum leads in diesel technology and is gaining traction in hydrogen fuel cells. Beyond autos, both metals serve vital roles in medical tech, dentistry, electronics, and jewelry, meaning their demand is diverse and resilient. For investors seeking alternatives that hedge against inflation and currency swings, platinum and palladium offer a compelling blend of scarcity, industrial importance, and long-term potential.
A Look at the Numbers: Historical Price Trends
If you’ve ever watched a graph of palladium or platinum prices over the last two decades, you’ll know—it’s been a bit of a rollercoaster.
Palladium’s Meteoric Rise:
Since 2016, the price of palladium has skyrocketed, fueled by growing demand for catalytic converters in gasoline vehicles and stricter emissions regulations around the world. It rose from below $500 an ounce in 2016 to above $2,800 by early 2022—a mind-boggling streak that left investors scratching their heads, wondering why they hadn't gotten in on the action sooner.
Platinum's Fall (and Potential Comeback):
At the same time, platinum crested about 2008 at a whisker over $2,200 per ounce before it plummeted amid the financial crash. Though not back to there yet, it has continued in a robust showing both in terms of industry utilization and investment vehicles. Rumblings lately of growth in hydrogen fuel cell applications might signal a comeback.
Booms, Busts, and What They Tell Us:
In times of economic booms, both metals will gleam owing to increased industrial production. But in recessions? Platinum will usually bear the brunt because of its association with manufacturing, while palladium, being more scarce and more unpredictable, can act erratically, moving widely based on supply interruptions (hello, geopolitical risk) or the movement of the auto market.
Short and sweet, if palladium were a tech stock, platinum could be a blue-chip with a comeback. Knowing these trends assists us in balancing which metal has greater investment potential for the future.
Supply & Demand Dynamics
Let's speak logistics, because when it comes to platinum investing, supply and demand have an enormous say in determining returns.
Palladium: Tight Pool, Strong Pressure
Palladium is such a finicky metal—its supply is scarce, and when demand gets high, prices soar. Almost 80% of the world's supply originates in two countries: Russia and South Africa. Any interruption—political, logistical, or natural—can ripple through the market. Add to that frenzied demand from the automotive sector (particularly for catalytic converters in gasoline cars), and it's no wonder palladium has experienced erratic price fluctuations.
Platinum: Broader Reach, Safer Ground
Platinum, though still scarce, is produced in a wider variety of locations, such as South Africa, Russia, and North America. Its more stable production base provides it with a marginal advantage in terms of supply chain reliability. On the demand side, platinum is not only used in cars, but also in electronics, medical equipment, and jewelry, so its appeal is more varied—and its risk slightly more diversified.
Looking Ahead
The future supply picture is anybody's guess, but trends do count. Palladium might be in trouble if electric vehicles (which don't require catalytic converters) expand further. Platinum, however, might benefit from rising demand due to its possible application in hydrogen fuel cell technology—a trend to watch closely.
In essence, palladium’s scarcity might tempt short-term investors chasing spikes, while platinum’s diversified demand and broader production base could favor those of us thinking the long game.
Industrial Applications and Future Demand
We’re not just talking about shiny coins here—platinum and palladium are essential to industries powering modern life (and potentially the future).
Palladium: Still the Gasoline King
Palladium is the workhorse of gasoline-powered engines. Its main function? Assisting catalytic converters in detoxifying vehicle exhaust. It's also used in electronics such as sensors, capacitors, and even some mobile phones. But the surprise twist—electric vehicles (EVs) use no catalytic converters, and this may portend a weaker demand for palladium as the EV industry grows.
Platinum: A Longer Industrial CV
Platinum has long been applied in diesel engines, but it's beginning to gain more attention for its potential in hydrogen fuel cell technology—a cleaner, greener source for powering vehicles and even entire cities. On top of that, its historical position in jewelry and high-technology uses like medical devices makes this metal truly versatile.
The Green Energy Shift
Platinum is on the verge of a breakthrough as the world is moving towards a cleaner, greener environment. Fueled by platinum catalysts, hydrogen fuel cells are all the buzz in alternative conventional electric vehicles, particularly in the fields of heavy transport and industries. That's a long-term tailwind to keep an eye on for anyone looking at a platinum investment.
EVs: The Game-Changer
The growth of electric cars is a double-edged sword. It's going to cut into demand for palladium, but create new applications for platinum. That makes platinum appear to be the more versatile player in a fast-changing energy world.
In short, palladium dominates the here-and-now, but platinum could be positioning itself to dominate the next.
Volatility and Risk Profile
Stability isn't always included in the package when you invest in metals, and platinum and palladium are no exception.
Palladium: The Wild Child
Historically, the more volatile of the two has been palladium. Its price has skyrocketed and plummeted wildly over the last decade, largely because of limited supply (principally out of Russia and South Africa) and its intense dependence on the auto market. One hiccup in the mining process, or a downturn in car sales, and palladium prices can spin around like a kite in a hurricane.
Platinum: The (Relatively) Safer Bet
While platinum is not exempt from volatility, it tends to move more slowly and predictably. Its wider application—from jewelry to hydrogen fuel—insulates it slightly from one-sector shocks. That being said, its price can be affected by diesel engine trends and macroeconomic forces more generally.
Know Thy Risk
If your investing approach is geared more toward high-risk, high-reward moves, then palladium could be your rollercoaster ride. But if long-term positioning is more your speed and less theatrics, then platinum provides more stable terrain—and maybe even more tantalizing upside as clean energy technology takes off.
Bottom line? Familiarize yourself with your tolerance. Volatility can be an opportunity—or mayhem—depending on your ability to manage it.
How to Invest in Platinum and Palladium
Whether you prefer the sensation of feeling metal in your hand or a click-based trader driving markets, both platinum and palladium present a variety of means of investment.
Physical Bullion (Coins & Bars)
The traditional path. Coins and bars are physical holdings that you can keep safe or stash away in a precious metals IRA. They're particularly attractive if you like direct ownership and aren't intimidated by a bit more responsibility when it comes to storage.
ETFs and Mining Stocks
Rather prefer keeping things virtual? Exchange-Traded Funds (ETFs) get you the metal prices exposure without having to warehouse anything. Alternatively, you invest in companies mining these metals, though bear in mind, with stocks, you're experiencing company performance and commodity price highs and lows as well.
Futures and Options
For the more seasoned (and risk-accepting) investor, futures and options present chances for speculation on the direction of prices. These contracts are leveraged but more volatile and complex, so use them cautiously—and with a good strategy.
Availability and Liquidity
Stocks and ETFs are likely the most liquid and easiest to sell. Physical bullion is not as liquid but provides stability over the long term in value. No matter what your style is, there's a point of entry to invest in platinum or palladium investing that will meet your timeline and financial goals.
Platinum vs. Palladium: Price Per Ounce Comparison
Let's discuss numbers—because at the end of the day, price is everything.
As of April 2025, platinum's spot price is hovering around $1,005 per ounce, and palladium is hot on its heels at about $1,000 per ounce. Yes, you heard that correctly. After years of palladium being the more expensive metal, the two are now in a virtual tie—cue the dramatic plot twist.
Perception vs. Reality
Even with this convergence in prices, platinum is typically regarded as the "underappreciated" metal, particularly considering its increasing industrial application and investment value. Palladium, however, had its day in the sun on the back of gasoline engine demand. But as electric vehicles grow and emissions laws change, its premium starts to look wobbly.
So…Which Has More Room to Grow?
If we’re talking potential upside, platinum might just be the dark horse. It has the lower historical high, broader usage opportunities (hello, hydrogen economy), and a price that hasn’t yet caught up to its possibilities. Palladium? Still valuable, but perhaps closer to its peak, especially as EV adoption changes the catalytic converter game.
Bottom line: If you're looking to bargain-hunt for long-term upside, platinum may be the play. But if you love momentum and volatility, palladium may still have a few tricks up its sleeve.
So, Which Metal Has More Potential?
Both platinum and palladium contribute something different. Palladium has had a brilliant run, particularly since 2016, because of its usage in gasoline vehicles. But as EV adoption continues to increase and supply tightens, it's now better positioned for short-term, high-risk investors seeking momentum.
Platinum, meanwhile, is shaping up as a long-game player. It's cheaper, it has varied industrial applications, and it's gaining popularity in green energy technology, especially hydrogen fuel cells. That makes it a sound choice for investors interested in long-term growth and diversification.
At Pacific Precious Metals, we provide secure access to both metals in the form of high-quality bullion and customized services. If you're platinum leaning, palladium leaning, or a little bit of both, your approach should be based on your risk tolerance, objectives, and time horizon.
