Precious metals beyond gold and silver — platinum, palladium, rhodium, iridium — serve specific industrial applications that drive their fundamental value independently of pure safe-haven demand. Palladium and platinum are critical in catalytic converters for internal combustion engine vehicles, which creates a demand profile tied directly to automotive production volumes. The EV transition is a significant structural risk: battery electric vehicles do not require catalytic converters, and as EV penetration rises, automotive catalytic converter demand will decline. Supply is highly concentrated geographically — South Africa and Russia together control the vast majority of platinum and palladium production, creating geopolitical supply risk. Hydrogen fuel cell technology represents a potential alternative demand source for platinum, but the scale and timing remain uncertain. For investors, these metals require a clear view on the pace of EV adoption relative to current pricing assumptions, and on geopolitical stability in the concentrated production regions, since either factor can produce significant and sustained price dislocations.
