Comparison
Platinum vs Palladium
Both metals belong to the platinum group (PGM), both are used heavily in vehicle catalytic converters, and their prices often move in opposite directions as automakers substitute one for the other.
Platinum
- Used in diesel catalytic converters, jewelry, electronics, glass and fuel cells.
- Mined mostly in South Africa (~75% of global supply).
- Denser and rarer than gold, but more volatile.
Palladium
- Used in gasoline catalytic converters, electronics and dentistry.
- Mined mostly in Russia and South Africa.
- Demand collapsed in 2023–2024 as automakers swapped back to platinum.
Which to choose
As a long-term investor, platinum currently trades at a steep discount to gold and is structurally tied to broader industrial use. Palladium is more cyclical and depends heavily on the trajectory of internal-combustion vehicles. Most precious-metals investors allocate a small percentage (1–5%) across both, alongside larger positions in gold and silver.