Diverse Drivers of Platinum Demand

Platinum is one of the rarest metals in the world, with unique physical and catalytic properties making it highly valued across a number of diverse demand segments, including key technologies that make it a critical mineral for the energy transition. According to the World Platinum Investment Council’s latest infographic, the four core segments of platinum demand are automotive, industrial, jewellery and investment.

Widely used in autocatalysts, fuel cell electric vehicles and spark plugs, the WPIC infographic states that automotive demand for platinum is the single largest demand segment, accounting for 31-46% of total platinum demand in the last five years.

Platinum’s diverse industrial uses make up the second largest demand segment, accounting for between 26-36% of total demand in the last five years. WPIC notes that industrial demand for platinum has grown at 2x the pace of global GDP since 2013, with the medical industry reliant on the precious metal due to it being biocompatible and well tolerated by the human body.

Global annual jewellery demand has been between 23-30% of total platinum demand over the last five years, and the precious metal has become renowned for setting diamonds and gemstones securely. According to the WPIC, China, USA, Japan and India are driving the platinum jewellery demand.

Investment has been the most variable segment over the past five years, ranging between 10% and 20% of total demand. This is largely due to physical platinum exchange traded funds (ETFs) becoming firmly established in several regions, as well as the growing availability of new platinum bullion coins and bars.

You can view the entire World Platinum Investment Council infographic here.