The platinum group metals (PGMs) consist of six chemically and physically similar elements: platinum (Pt), palladium (Pd), rhodium (Rh), ruthenium (Ru), iridium (Ir), and osmium (Os). These metals are often alloyed with each other and with other elements to create materials with specific properties for various industrial and other applications. 

We recently asked Dan Fried, Founder and CEO of Specialty Metals Smelters and Refiners, to name a few places where platinum can be found. Some of his advice was surprising and if you follow it, we predict you will find platinum that you can recycle for money. 

Platinum alloys are valuable and are commonly used in various industrial applications, including electronics, jewelry, and more. And if you can find platinum and platinum alloy scrap, chances are good that you will be able to recycle it for a good payback. After all, platinum is now trading for $908.00/troy ounce. That means that even a small quantity of platinum scrap you find can often result in a big profit for you. 

What are platinum group metals, where are they found and what are they used for?

Platinum group metals (PGMs) are a group of six metallic elements that belong to the platinum group on the periodic table. 

Recycling platinum scrap requires expertise, skill, and the right equipment. It is a complex process, and there are several mistakes your refinery can make that can cost you money. 

Why can these errors cost you money? It can happen in two ways . . . First, the quality of the platinum that is obtained by the recycling company could be adversely affected. And second, the quantity of platinum obtained could be reduced. (In other words, some platinum is lost during the process of extraction.)

With platinum currently trading for $940.00 on the London Fix, it is a metal you should definitely not overlook as you make your plans as a precious metal investor. 

But where can you find platinum scrap that we can recycle for you? Let’s review four of the best kinds of platinum scrap you should be focusing on. 

If you go looking for gold or silver deposits outdoors, chances are good you will find small quantities of those precious metals. All you need is a metal detector, a gold panning kit or machinery, or other basic equipment. You might not find a tremendous amount of those metals during a typical day of prospecting. But you will find something – often enough to make your day of hunting worthwhile.

Let’s start today’s article by asking you to answer this simple question about platinum . . . 

When you go looking for platinum scrap, you should be looking for a bright, white, metal with a shiny surface.   [  ] true [  ] false

You’ll be surprised to hear that the statement above is false! 

There is a simple reason why the demand for platinum scrap will remain strong in the future . . . 

The world’s platinum mines cannot keep up with the demand for platinum in manufacturing

According to statistics gathered by Statistica.com, 211.6 metric tons of platinum was used in manufacturing in year 2022.  

That’s a lot of platinum, and it might interest you to know where it was used.

Let’s say you have a quantity of platinum scrap. It could be a few barrels full of old thermocouple wire, a batch of platinum wire you acquired from a jewelry factory that was going out of business, or even some old turbine blades from jet engines. 

If you have platinum scrap to refine, you could deliver it to a platinum refinery near where you live, walk away with a check for the amount of platinum that the refinery estimates your scrap contains, and never give it a second thought. 

It’s easy to junk a car. You call a local company that runs ads that say, “We buy cars” and they come and tow your car away.

Yes, that’s easy. But if you dispose of your old car that way, chances are good you will be giving away gold, silver and other valuable materials that can be worth $100.00 or more. So . . . pull them out before you junk that car and talk to us about recycling them.

A recent article in Metals Focus points out that demand for platinum, palladium and rhodium (all platinum group metals) grew 5% in 2021 and is expected to hit a record 11% increase in 2022 alone.

What is causing the surge?

Metals Focus points to these two trends:

If you’ve been reading the Specialty Metals Blog over the last year, you know that we have been monitoring the increasing acceptance of hydrogen fuel cell cars, which promise to create greater demand for platinum. (Why? Because platinum is used to convert hydrogen to electricity that is used to power the cars.)

If you have been reading our posts, you also know that up until now, you have only been able to buy fuel cell cars in Hawaii and California, the only states where it is possible to buy hydrogen at a filling station.

When someone mentions devices that clean exhaust gas, chances are you think, “I know what they are . . . they’re catalytic converters that are installed on cars.”

But there are other kinds of exhaust gas purifiers that can be recycled profitably – varieties that you might not know about. They too can contain platinum, rhodium, and even palladium. We’ll give you a quick course on what these other kinds of exhaust gas purifiers are and how you can make money reclaiming them by having us recycle them for you.

Industrial catalysts are substances – often metallic powders or screens that are used in industry to speed up, start, or facilitate chemical reactions. Catalysts also are sometimes used to lower the amount of energy that is consumed by chemical processes.

Absorbent materials are another form catalysts can take. They are chemicals that are used to absorb and remove certain chemicals from compounds where they are found. For example, BASF makes a variety of products that absorb and remove impurities from natural gas before it is distributed to consumers. They are catalysts of a special kind.

If you think there are a lot of electrical switches in your home – hundreds, probably, if not more – you would be amazed to learn how many switches can be found in a factory where any kind of manufacturing process is taking place. It doesn’t matter whether that plant is making mechanical components, chemicals, paints, solar panels or much of anything else, you are going to find switches everywhere.

Will this emerging trend create new opportunities to recycle platinum?

Just when we were starting to think that enthusiasm for hydrogen fuel cell-powered vehicles was starting to fall, interest is picking up again. Learn more in this recent video about fuel cell cars that was shown on PBS News earlier this month.

“The World Platinum Investment Council (WPIC) said on Wednesday the global platinum market would see a much larger surplus this year than it previously forecast and another big oversupply in 2022.”

“Platinum Market Heading for Biggest Surplus in Years: WPIC,” The Business News, November 24, 2021

Road & Track magazine reports that in 2024, a company called Forze Hydrogen Racing will enter the historic 24-hour race that is held every year at Le Mans. Forze’s racecar is being built by a group of engineering students, who are developing the car with the help of Hyundai. It will compete at Le Mans in a new class that will be created that year for fuel cell cars.

“. . . the future might be closer than it appears,” Road & Track asks, and that could be true.