A Q&A with APMEX and the World Platinum Investment Council (WPIC)
APMEX: We hear a lot about artificial intelligence, or AI. What does that have to do with platinum?
WPIC: Quite a lot. AI might seem purely digital, but it relies on physical materials too, including platinum. Platinum’s unique properties including durability, heat resistance, and electrical conductivity make it essential to developing the hardware that powers AI systems.
APMEX: Platinum has plenty of industrial uses, so we know platinum isn’t just for jewelry or coins. But just how much industrial application is there for platinum?
WPIC: While investors know it as a precious metal like silver and gold, platinum is a critical industrial metal. It’s used in cars and trucks (to reduce harmful emissions), medical devices, electronics, energy systems, and increasingly in applications connected to AI.
APMEX: Where exactly does platinum show up in AI-related tech?
WPIC: The list is extensive, spanning a range of proven and existing uses. Let’s take data centers, which we know are expanding at a huge rate. Hard disk drives that store vast amounts of data are coated with a platinum alloy. With the electronics needed for AI, platinum film is added to semiconductors because its conductivity and stability ensure efficient electron flow. Platinum-based fuel cells are even able to generate off-grid power for energy-hungry AI infrastructure.
APMEX: Why does platinum’s melting point make it so useful?
WPIC: With its high melting point (1,768°C/3215°F), platinum is non‑reactive and stable, retaining its strength at extreme temperatures. These properties make it ideal for the tools used to hold and shape molten materials. In respect of AI, the fiberglass needed to create the structure of printed circuit boards is made with platinum tools, as are the industrially grown crystals used for the optical interconnects, akin to nerve pathways, that enable machine learning.
APMEX: Is it true platinum is also assisting with the development of humanoid robots?
WPIC: Absolutely! Medical-grade silicone manufactured with the help of platinum catalysts is even being used to make the features of robots appear more human-like. In China, AI-enabled humanoid robots represent the fastest-growing emerging application for platinum-cured silicone.
APMEX: Are we already seeing AI-related platinum demand increase?
WPIC: Yes, we are. While it is too soon to quantify global platinum demand growth potential from AI, our data indicates that this is already in evidence from areas such as silicone and fiberglass production, semiconductor fabrication, and hard disk drives for data storage.
APMEX: Platinum is pretty rare. Does that matter for investors?
WPIC: It does. Platinum is significantly rarer than gold, with limited global supply concentrated in just one region, Southern Africa. When you combine that scarcity with growing demand across a diverse range of uses, it creates a compelling long-term story, especially as demand is outstripping supply.
APMEX: How does platinum compare to other precious metals in terms of investment appeal?
WPIC: Platinum offers something unique – it’s both a precious metal and a critical industrial commodity. That means its value is influenced not just by investment demand, but also by real economic activity and technological growth.
APMEX: If someone doesn’t currently own platinum, why consider it now?
WPIC: Because it’s increasingly clear how essential it is. From powering AI data centers to enabling advanced electronics and clean energy, platinum is helping shape the future. Once they see how widely it’s used, and how important those uses are, investors naturally start to see how it might fit into a diversified portfolio.
APMEX: What’s the key takeaway?
WPIC: Platinum is one of the unsung heroes of modern technology. It quietly makes so much of today’s world possible and, as AI accelerates, its role is only becoming more important. Platinum is not just a metal, it’s a vital part of the future.
Source: The World Platinum Investment Council
If you’re interested in learning more about investing in platinum, we have resources in our Knowledge Center Platinum Investing Guide.
