Why Is Platinum So Expensive?
Because platinum is so pure, it is hypoallergenic, resists tarnish, is one of the world’s strongest jewelry metals and is extremely durable.
Jeremy Lupke
Last Update 10 months ago
Platinum is expensive primarily due to its rarity and its unique properties that make it valuable in various industries:
Rarity: Platinum is rarer than gold and occurs in smaller quantities in the Earth's crust. Its scarcity drives up its price.
Industrial Demand: It has widespread industrial applications, especially in catalytic converters for vehicles, which convert harmful gases into less harmful emissions. This industrial demand contributes significantly to its value.
Jewelry and Investment: Like gold, platinum is used in jewelry, particularly in high-end pieces due to its durability and luster. It's also considered a stable investment, which further supports its high price.
Supply Chain Challenges: Mining and refining platinum can be complex and costly, often involving deep-level mining and specialized extraction techniques, adding to its price.
These factors combine to make platinum one of the most expensive precious metals.