With tougher auto emission standards being implemented the world over, developed and developing countries increasingly are using platinum-bearing catalysts. Platinum is widely used in chemical and petroleum refining catalysts, as well as in the electronics and dental sectors. One of the largest uses of platinum is in jewelry. Demand for platinum jewelry is particularly strong in Japan, although it is growing in the United States, China, and other countries. Platinum's rarity coupled with its wide industrial usage has made this metal an investment alternative to such competing assets as stocks, bonds, and currencies.
Some investors use platinum as a surrogate for gold.
Palladium is primarily an industrial metal, often applied in a number of uses as an alloy of platinum. Investment demand for palladium exists, although to a lesser extent than gold, silver, and platinum. Russia is the largest producer of palladium. The second largest source of palladium flows from South Africa, with smaller amounts of palladium recovered in Canada, the United States, Brazil, Australia, Finland, and Zimbabwe. The greatest use for palladium is in electronic components and connectors.