While many people invest in gold or silver, one precious metal that is often overlooked is platinum. Platinum is rarer than gold and silver — so rare, in fact, that all of the platinum ever mined could fit into your home. It is one of the rarest and most sought-after precious metals on Earth, often prized for its use in jewelry, industrial applications, and investment portfolios. Its rarity stems from the fact that platinum is found in very few places globally, with the majority of the world’s platinum supply coming from South Africa, followed by Russia and a few other locations.
This scarcity makes platinum mining more challenging and expensive compared to other metals. Approximately 190 tons of platinum are mined annually, a fraction compared to the thousands of tons of gold and silver extracted each year. Platinum is difficult to extract and requires mining more ore for a smaller yield of metal compared to others. Only around 8,000 metric tons of platinum have been extracted throughout history. If you were to melt all of this platinum down, it would comfortably fit inside a living room measuring about 25 cubic meters—roughly the size of a large SUV or a modest-sized office.
Comparison of Platinum’s Rarity to Gold
When comparing platinum’s rarity to gold, platinum is the rarer metal. While gold is more widely known as an investment and a store of value, it is actually more abundant than platinum. For every ounce of platinum mined, about 10 ounces of gold are extracted, making platinum around 10 times rarer than gold. Although the comparison for the amount of platinum mined to date is to visualize it as fitting into a small living room, the total amount of gold mine is often compared to filling a few Olympic-sized swimming pools. Additionally, platinum is found in fewer geographical locations than gold. Gold is mined on every continent except Antarctica. Platinum’s density and higher melting point also make it more difficult to work with and process. Because of these factors, the supply of platinum is often more constrained than gold, which can cause more price volatility in the platinum market. However, gold remains more popular in the global financial markets, so while platinum is rarer, gold has a larger market presence and liquidity.
Comparison of Platinum’s Rarity to Silver
Platinum’s rarity is even more pronounced when compared to silver. Silver is significantly more abundant in the Earth’s crust and is mined at a much higher rate than platinum. For every ounce of platinum produced, approximately 100 ounces of silver are mined. This stark difference in production rates highlights platinum’s exclusivity. Silver is commonly found alongside other metals like copper and lead, making it easier and more cost-effective to extract. In contrast, platinum is usually found in concentrated deposits deep within the Earth. While both metals have important industrial uses—silver in electronics and photovoltaics, and platinum in catalytic converters and medical devices—platinum’s rarity and its role in high-tech and automotive industries make it significantly more valuable on a per-ounce basis. Moreover, platinum is often regarded as a luxury metal in jewelry, competing with gold, while silver is considered more accessible to the average consumer.
Where is Platinum Mined?
Platinum is mined in a few key locations around the world, with the vast majority of global production concentrated in South Africa. Platinum mining in South Africa, or mining for Platinum Group Metals (PGM), is widespread on the African continent. So much so, that South Africa holds over 80% of the world’s reserves. The supply for platinum products is tight, due to the metal being extremely rare. Platinum is mined in very few mining deposits throughout the world and many of the uses of platinum go to the automotive industry for vehicle emissions devices.
The main countries where platinum is mined include:
- South Africa: This country is the world’s largest producer of platinum, accounting for roughly 70% of the global supply. The Bushveld Complex, located in South Africa, is one of the richest sources of platinum and other platinum group metals (PGMs).
- Russia: Russia is the second-largest producer of platinum, contributing about 10-15% of the global supply. The Norilsk Nickel mining complex in Siberia is a major source of both platinum and palladium.
- Zimbabwe: Zimbabwe ranks third, producing a smaller yet significant portion of the world’s platinum. The Great Dyke geological feature is home to most of the country’s platinum reserves.
- Canada: Canada is a notable producer of platinum, particularly in the Sudbury Basin, where platinum is mined alongside nickel and copper.
- United States: Platinum is also mined in the U.S., primarily in Montana, within the Stillwater Complex, which is the largest known platinum deposit in the country.
These regions dominate global platinum production due to their rich geological formations, but South Africa remains the clear leader in both reserves and current output.
Why Platinum’s Rarity Matters
The rarity of platinum impacts its price and affects its desirability among investors and collectors. Its limited supply and wide range of industrial uses, particularly in the automotive and electronics industries, mean that platinum can often experience sharp price increases when demand spikes or when supply is disrupted. This makes platinum a unique asset for those looking to diversify their precious metal portfolios. Furthermore, platinum’s rarity has led to its frequent use in high-end luxury goods, further establishing its image as a premium metal. While it may not have the historical monetary role of gold or the accessibility of silver, platinum’s exclusivity and importance in modern technology make it an attractive investment for those seeking to hold a rare and valuable resource.
Some investors are comfortable buying what they know, such as gold or silver. However, investors looking for an edge can look to under-tapped markets such as platinum. Platinum is often referred to as the “Rich Man’s Gold,” and serves as a diversifier of precious metals portfolios. The rarity of platinum makes it valuable, and our platinum spot prices chart tracks the price of the metal over time.
