Platinum and palladium are sister metals: both belong to the platinum group metals (PGMs), are often mined together, and are both used in vehicle catalytic converters. The platinum/palladium ratio — the platinum price divided by the palladium price — shows which of the two is more expensive and by how much. You can follow it live on our platinum/palladium ratio chart.
How to Read the Ratio
- Above 1.0: platinum is more expensive than palladium per ounce.
- Below 1.0: palladium is more expensive.
- A ratio of 0.5 means one ounce of platinum buys half an ounce of palladium.
A Brief History
For most of modern history platinum was the more expensive metal, often by a wide margin. There were exceptions: palladium spiked above platinum around 2000–2001, when Russian export delays coincided with strong demand. Platinum then regained a large premium for well over a decade.
The big reversal came in late 2017, when palladium overtook platinum. Over the following years palladium rallied far more strongly and, at its 2021–2022 peak, traded at more than three times the platinum price (a ratio below roughly 0.35). Palladium then fell sharply, and around 2023–2024 the two metals converged again, with platinum moving back above palladium.
What Drives the Ratio?
Diesel versus gasoline
Diesel catalytic converters have traditionally used mainly platinum, while gasoline (petrol) catalysts use mainly palladium. When Europe’s diesel market shrank after the 2015 Volkswagen emissions scandal and gasoline cars gained share globally — especially in China — demand shifted towards palladium.
Substitution
When palladium became far more expensive, automakers had a strong incentive to re-engineer gasoline catalysts to use more platinum. Substitution takes years because each design must be tested and certified, which is one reason price gaps can persist.
Different supply bases
South Africa produces roughly 70% of mined platinum, while Russia (mainly Nornickel) is the largest palladium producer with around 40% of mine supply. A supply shock in one country therefore affects the two metals differently.
Electric vehicles
Battery electric vehicles need no catalytic converter. Because palladium is more dependent on gasoline-car catalysts, it is generally considered more exposed to EV adoption, while platinum has additional demand from jewelry, industry and hydrogen technologies. Hybrid vehicles, which still use catalysts, complicate the picture.
How Market Participants Use the Ratio
Some traders watch the ratio to judge relative value between the two metals or to express a view on one versus the other without taking a direct view on the overall price level. Ratios can remain at extreme levels for years, so historical averages are a weak guide to timing. Our chart reading guide explains the tools available on the ratio chart.
Frequently Asked Questions
What is the platinum to palladium ratio?
It is the platinum price divided by the palladium price. Above 1.0 platinum is more expensive; below 1.0 palladium is.
Why did palladium become more expensive than platinum?
The shift from diesel cars (platinum-heavy catalysts) to gasoline cars (palladium-heavy catalysts) after 2015, tight Russian-dominated supply and strong emissions rules drove palladium above platinum from late 2017.
Disclaimer: This article is for general information and education only. It is not investment, tax or financial advice, and it does not recommend buying or selling any asset. Precious metal prices are volatile; past performance does not predict future results. Figures are approximate and should be checked against current primary sources.