What is platinum and why is it special?

Platinum is a rare, silver-colored precious metal with unique properties. It is a special metal because it is 30 times rarer than gold and also extremely strong. It is harder than gold and silver and has a melting point of 1,768 degrees Celsius. This high melting point makes platinum very durable, which is why it is increasingly used for jewelry, but especially in medical equipment that must last a long time and work accurately.

Additionally, platinum is highly versatile. It is not only used in jewelry and various industries, but also as an investment. There are several platinum coins in circulation, such as the special Tudor series. Platinum is also available in bar form.

The history and discovery of platinum

Just like gold, platinum was discovered in the Western world by Spanish explorers in South America in the 16th century. Before that, the precious metal was used by local civilizations, for example in jewelry and decorative household items.

Objects used in religious ceremonies were also often made of platinum. Only later was it discovered that platinum is essential in various devices for conducting electricity.

What is platinum used for?

Platinum is primarily known as an investment and increasingly as a material for jewelry, but did you know that this precious metal also has various industrial applications? In the automotive industry, platinum is used in the production of catalytic converters in cars. This is due to increasingly strict global environmental regulations.

Catalytic converters reduce harmful exhaust emissions by accelerating chemical reactions. They convert harmful substances into less harmful emissions before they enter the air. Platinum is also used in hydrogen technology, allowing for more sustainable energy production.

This metal is used in jewelry because of its beautiful shine, strong properties, and the fact that it is a hypoallergenic metal. This makes platinum jewelry suitable for everyone. Platinum’s hypoallergenic properties are also why it is used in medical and chemical applications, such as pacemakers and laboratory equipment.

The value of platinum in the modern economy

As platinum is used in more and more applications, such as in the hydrogen and medical industries, it is becoming increasingly scarce. This also increases its value. Over recent decades, this has caused fluctuations in supply and demand, resulting in price volatility.

In 2008, at the beginning of the economic crisis at that time, the price of platinum peaked at around $2,300 per troy ounce, according to research by the World Gold Council. This rise was driven by strong industrial demand from the automotive sector and limited supply.

After the financial crisis, however, the price dropped significantly and stabilized for a long time between $800 and $1,000 per troy ounce. From 2020 onward, the price began to rise again, mainly due to renewed demand for catalytic converters and production challenges, bringing the price above $1,200.

Because platinum currently has considerable value and that value is also stable, this precious metal is becoming increasingly popular as an investment. More and more countries are also including platinum in their national reserves.

How is platinum mined and processed?

Platinum is mainly mined in countries with a strong mining industry, such as South Africa and Russia. The mining process is complex and labor-intensive, as the precious metal must be extracted from ore where it is found in low concentrations.

Platinum goes through a complex extraction process before it is converted into bars, coins, or industrial products. It is typically mined as a by-product of nickel and copper ores.

The ore is concentrated and then chemically refined by adding acids and using electrolysis, to obtain platinum of 99.95% purity. The refined platinum is then cast into bars or pressed into coins, such as the Platinum Eagle or Maple Leaf, which meet strict purity standards.

Platinum is also processed into catalytic converters, hydrogen fuel cells, and high-end jewelry due to its unique properties. The metal is corrosion-resistant and extremely durable.

The complex processing makes platinum a valuable precious metal for both investment and industrial purposes. Do you have questions about platinum or would you like to invest in this unique metal? Contact us to explore the possibilities.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.