Search for platinum vs palladium and most results are about wedding rings. This piece is for someone deciding between the two as holdings. It compares their prices over ten years, where each comes from, how much each price has moved, and how IRAs treat them. It does not forecast either price, and it does not tell you which to buy.
What is the difference between platinum and palladium?
Both are platinum-group metals used mainly by industry. For an investor, the main differences are where each is mined and how far each price has moved, both covered below.
The USGS Mineral Commodity Summaries 2026 says the leading US use for these metals is catalytic converters, which cut harmful emissions from vehicles. The two can partly stand in for each other there, so a change in one metal's price can shift demand toward the other. Platinum's own demand, supply and 2026 market balance are covered in is platinum a good investment?
Is palladium more valuable than platinum?
Not at the moment, on US Geological Survey figures. Palladium's annual average was higher from 2018 through 2024, but the USGS estimates 2025 averages of $1,200 an ounce for platinum and $1,100 for palladium.
| Year | Platinum | Palladium |
|---|---|---|
| 2016 | $989.52 | $617.39 |
| 2017 | $951.23 | $874.30 |
| 2018 | $882.66 | $1,036.43 |
| 2019 | $866.94 | $1,544.31 |
| 2020 | $886.02 | $2,205.27 |
| 2021 | $1,094.31 | $2,419.18 |
| 2022 | $966.54 | $2,133.81 |
| 2023 | $973.00 | $1,351.66 |
| 2024 | $960.70 | $994.90 |
| 2025 (estimate) | $1,200 | $1,100 |
Sources: US Geological Survey, Mineral Commodity Summaries 2021 (2016), 2022 (2017 to 2020) and 2026 (2021 to 2025), platinum-group metals chapters. 2025 figures are USGS estimates.
At the widest point in the USGS table, palladium averaged about 2.5 times platinum in 2020 ($2,205.27 ÷ $886.02) and about 2.2 times in 2021 ($2,419.18 ÷ $1,094.31). In 2016 the order was reversed, with platinum at about 1.6 times palladium ($989.52 ÷ $617.39).
Why did palladium overtake platinum, then fall back?
The US Geological Survey points to substitution between the two metals in catalytic converters, and in 2025 to lower output and substitution back toward platinum. It does not assign a single cause to the whole ten-year pattern.
The 2026 USGS chapter says palladium “has been used as a substitute for platinum in most gasoline-engine catalytic converters because of the historically lower price for palladium relative to that of platinum.” It adds that “about 25% of palladium can routinely be substituted for platinum in diesel catalytic converters.”
For 2025, the same chapter says the annual average rose “by 25% for platinum” and “by 11% for palladium” compared with 2024. Explaining price increases across the platinum-group metals, it points to “decreased production and increased demand,” including “the substitution of platinum in automobile catalysts,” and adds: “Investment uncertainty and volatility may have also contributed to price increases.”
Where does the supply of platinum and palladium come from?
Palladium comes mostly from Russia and South Africa, and platinum mostly from South Africa. The US Geological Survey estimates 2025 world mine output at 190,000 kilograms of palladium and 170,000 kilograms of platinum.
| Country | Palladium | Platinum |
|---|---|---|
| Russia | 84,000 | 20,000 |
| South Africa | 70,000 | 120,000 |
| Canada | 16,000 | 5,000 |
| Zimbabwe | 15,000 | 18,000 |
| United States | 6,200 | 1,800 |
| World total (rounded) | 190,000 | 170,000 |
Source: US Geological Survey, Mineral Commodity Summaries 2026, platinum-group metals. All figures are estimates.
Russia and South Africa together mined 154,000 of the 190,000 kilograms of palladium (84,000 + 70,000), about 81 percent, on USGS estimates. South Africa alone mined 120,000 of the 170,000 kilograms of platinum, about 71 percent. The same USGS chapter says estimated Russian palladium production “decreased by 6%” in 2025, citing reasons that include “geopolitical and investor uncertainty related to the Russia-Ukraine conflict.”
How volatile are platinum and palladium prices?
On US Geological Survey annual averages, palladium has moved far more than platinum. Palladium rose from $617.39 in 2016 to $2,419.18 in 2021, then fell to $994.90 in 2024. Platinum stayed between $866.94 (2019) and $1,200 (the 2025 estimate) across the ten years.
From 2016 to 2021, palladium's USGS annual average roughly quadrupled ($2,419.18 ÷ $617.39 = 3.9). From 2021 to 2024 it fell about 59 percent ($2,419.18 to $994.90). Platinum's largest move between neighboring years in the table was its 2025 estimate of $1,200 against $960.70 in 2024, the 25 percent rise the USGS reports.
Annual averages smooth out movement within each year, so prices inside any one year ranged wider than these figures show. The table gives the direction and scale of the change, not the size of daily swings.
Is palladium a good investment? The case for it and the risks
It depends on what you want it to do. The sources support a case for it and a case against it, and neither settles the question for every investor.
The case for, from the sources. Supply is concentrated, with Russia and South Africa mining about 81 percent of 2025 output in USGS estimates, so a supply problem in either country reaches the whole market. Palladium has a measured industrial use in catalytic converters. The US Mint issues a palladium bullion coin, and palladium bullion that meets the exchange standard can go in an IRA.
The case against, from the sources. The same concentration is a risk as well as a support. Demand leans on one use, and the USGS describes carmakers substituting between palladium and platinum as their prices change. Its price history in the USGS table shows how far it can fall. Physical palladium pays no interest or dividend, so any return depends on the price when you sell. Costs also apply on both sides of a trade: a dealer quotes palladium at a premium over the market price when you buy and pays a bid below it when you sell.
Can platinum and palladium go in an IRA?
Yes. Section 408(m)(3) of the Internal Revenue Code lets an IRA hold platinum and palladium bullion that meets the minimum fineness a regulated futures exchange requires for delivery, if the IRA's trustee has physical possession of it.
The statute gives no number itself. The NYMEX palladium rulebook, chapter 106, sets delivered palladium at a minimum of 99.95 percent pure, and the platinum rulebook sets the same minimum. The statute names the American Platinum Eagle as an allowed coin but names no palladium coin. The full rule, and how the Gold Eagle exception works, is in IRA-eligible metals, explained. Custodians set their own lists of accepted products, so confirm any product with yours.
How do you own platinum or palladium?
Most individuals buy coins or bars, either outright or inside a self-directed IRA. Metal bought outright can be kept at home or at a depository. Metal in an IRA must be held by the IRA's trustee or custodian.
The US Mint issues American Eagle bullion coins in both metals. Bars and rounds are also sold in both metals. Futures are another route, and the contracts differ in size: NYMEX palladium covers 100 troy ounces and NYMEX platinum 50 troy ounces.
Owning metal outright means you hold title directly and choose where it is stored. In an IRA, the account holds the metal, a custodian administers it, and it sits at the custodian's approved depository. Storage and insurance for metal at a depository are set by that depository's own agreements and vary between them. Products that qualify for an IRA are listed on our IRA-eligible products page.
Dormy, Inc. is a Florida precious metals dealer. Dormy sources and sells Platinum and Palladium American Eagles, and bars and rounds from major refiners, and arranges depository storage for metal bought outright. We do not give tax, legal or investment advice.
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