Platinum

Platinum Mining

The first known occurrence of platinum in an application dates back to 700BC in Egypt, where the metal was used in the Casket of Thebes (a little box decorated with hieroglyphics in gold, silver and an alloy of PGMs).

Much later, in the 1500s in South America, the Spanish Conquistadors found many occurrences of what they termed platina while they were panning for gold. In Europe, scientists of the day had a difficult time trying to categorise and find application for the metal, mainly because of its durability and other extraordinary properties. A breakthrough came in the 18th century when a Swedish researcher added arsenic to the metal but it was only in 1782 that platinum was successfully melted by adding oxygen.

In South Africa, the discovery of the first platinum nuggets dates back to 1924. The geologist Hans Merensky’s follow-up work resulted in the discovery of two deposits, each around 100km in length, which became known as the Bushveld Igneous Complex.

Platinum Mining In South Africa

Platinum Group Metals (PGMs)

The Platinum Group Metals (PGMs) are six metals that are chemically, physically, and anatomically similar. The six metals naturally occur in the same ore bodies.

PGMs are highly recyclable and indispensable in many industrial and medical applications. According to the International Platinum Group Metals Association (IPA), one-quarter of all goods manufactured either contain a PGM or had a PGM play a key role in its production.

The six PGMs are: 

  • Iridium – the most corrosion-resistant pure metal, used in pacemakers and other medical implants

  • Osmium – has poor resistance to oxidation, used as a stain for fingerprints and DNA testing
  • Palladium – soft, silvery-white metal, used as a catalyst for the petroleum industry
  • Platinum – dense, stable, and rare, widely used in medical and electronic devices, as well as jewellery
  • Rhodium – has low electrical and contact resistance, used in the production of nitric acid
  • Ruthenium – is a valuable alloy additive and catalyst, used in cleaning liquids, adhesives, and paints

Investing In Platinum

The demand for platinum is diverse and its distinctive qualities make it highly valued in a number of industries. It is a premier precious metal for jewellery, which, according to the WPIC, accounts for 23–30% of the overall demand for platinum.

Platinum also plays an important role in the investment market, alongside other precious metals such as gold and silver. With the industrial use of platinum on the increase, a growing number of investors are seeking to include it in their portfolios. 

Compared to gold prices, platinum has been at a discount to the less industrially useful metal on just four occasions during the past 40 years. The current period, its longest ever, is increasingly difficult to square with five consecutive years of demand outstripping supply. Investors who have not previously considered buying platinum may see this as an opportune entry point.

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On its journey from deep in the Earth’s crust to its exquisite polished form, a diamond travels through many highly skilled hands.

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