Just been reading up on platinum and honestly there's way more to this metal than most people realize. Everyone knows about gold, but platinum is actually the third most-traded precious metal globally, and the uses are pretty fascinating from an investor perspective.

So what is platinum used for? The biggest chunk of demand comes from autocatalysts in vehicles. These converters in car exhaust systems use platinum to convert over 90 percent of harmful emissions into less toxic compounds. Pretty wild that over 95 percent of new cars sold annually have these built in. Back in 2024, automotive demand was running around 3.17 million ounces, with projections to climb even higher. As emission standards get stricter, this demand isn't going anywhere.

Then there's the jewelry market, which is the second major use case. Platinum's got serious advantages - it's durable, doesn't tarnish, and can handle repeated heating without degrading. China's dominating this space as the largest market. The metal gets alloyed with palladium and other elements to make it easier to work with, and interestingly, people have been crafting platinum jewelry for thousands of years. South American indigenous cultures were doing it 2000+ years ago.

Beyond those two, industrial applications are massive. We're talking catalysts for fertilizer production, components in hard drives, electronics, dental work, glass manufacturing, and sensors. Medical devices are another significant use - platinum shows up in catheters, stents, and neuromodulation devices because it's biocompatible and inert. It's also critical in cancer drugs like cisplatin and carboplatin. What is platinum used for in medicine keeps expanding as technology advances.

Here's where it gets interesting for investors though. Platinum is 30 times rarer than gold and way harder to mine, yet gold prices have been more than double platinum's in recent years. That divergence started around 2015 and it's mainly because gold has that safe-haven appeal while platinum depends on industrial and jewelry demand - both vulnerable during economic downturns. Throughout 2024, platinum traded between $900-$1,100 per ounce, caught between supply constraints from South Africa (the top producer) and lagging demand from the auto sector.

The supply-demand dynamics are worth watching. South Africa's dealing with electricity and railway issues, Russia's situation impacts their output as second-largest producer, and demand has been soft due to economic pressures and the shift toward EVs that don't need catalytic converters. But platinum jewelry's becoming more popular as a cheaper alternative to gold jewelry, which could shift things.

If you're thinking about precious metals for your portfolio, both platinum and gold have potential, but they move to different rhythms. Understanding what is platinum used for across these sectors - automotive, jewelry, industrial, medical - helps you grasp the supply-demand picture and anticipate price movements. Worth doing your homework on both metals before deciding which fits your strategy.