Platinum shocked the market in December 2025, jumping nearly 40% in a single month — the largest monthly move in almost 40 years. At the same time, palladium and rhodium were up roughly 80–90% in 2025, which is why many catalytic converter recyclers are finally seeing profits again after years of painful margins. 

In this episode, Ed breaks down what drove the spike, what it signals for converter recyclers, and the three moves he believes will help businesses protect profits going into 2026. 

Why Platinum Spiked So Hard in December 2025 

 Framing the platinum move inside a broader macro environment: 

• Interest rates in the U.S. came down (he references roughly three-quarters of a percentage point), lowering borrowing costs. 

• The U.S. dollar weakened, and as a result gold and silver took off. 

• That “precious metals environment” set the stage — but Ed says the real trigger was tight platinum supply. 

In other words: the backdrop was supportive, but platinum’s move was amplified because supply was already constrained. 

The Demand Catalyst: Europe’s EV Policy Shift 

The major demand driver: fresh demand entering the market from OEMs after what he describes as the European Union easing its all-EV trajectory. 

Instead of rushing to a full EV fleet, automakers now have more runway to produce: 

• Internal combustion engines 

• Hybrids 

• EVs 

That matters for PGMs because hybrids require meaningful platinum and palladium loading in catalytic converters. Ed also notes that tightening tailpipe emissions standards increase the required PGM loadings in newer vehicles — adding another layer of demand pressure. 

What This Means for PGM Pricing 

Straightforward take: new demand prolongs strength. 

Ed ties the theme together like this: 

• If demand rises (hybrids + looser mandate trajectory + tighter emissions standards), PGMs stay supported. 

• If supply remains tight (especially platinum), price spreads can widen. 

He highlights how the platinum vs. palladium spread changed dramatically: 

• A year earlier, platinum and palladium were separated by about $50–$150/oz 

• More recently, he saw a spread around $550/oz
  His point: platinum is tighter, palladium has more supply coming out of recycling, and that could keep spreads wider. 

New Physical Demand Out of China 

Another “new” development Ed calls out: a futures exchange in China that can settle in physical metal, not just cash. 

He describes the significance simply: the ability for traders to take physical delivery creates new physical demand beyond autocatalyst consumption — and he emphasizes how recent this development is. 

The Three Moves for Recyclers in 2026 

This whole video is built around three practical moves Ed thinks matter most right now. 

Move 1: Move Your Inventory and Lock Profits 

Ed’s first move is direct: move inventory. With prices running hard, the goal is to lock profits instead of sitting exposed to volatility. 

He’s basically saying: don’t get cute trying to time the top — if you’ve got profit in the material, protect it. 

Move 2: Keep Your Capital Available 

Ed calls this “keep your powder dry.” 

If a deal comes across your desk — a batch of converters, cores, or other inventory — and you don’t have capital ready, you miss the opportunity. In Ed’s view, being liquid is how recyclers stay positioned to win when markets are moving. 

Move 3: Hedge New Deals and Protect the Downside 

Ed’s third move is about reducing risk after you buy. 

Once you acquire inventory, he recommends finding a way to commit it and lock gains, so you aren’t exposed to downside swings. He gives practical examples like: 

• making a forward sale (committing inventory at today’s price with pickup later), or 

• hedging material moving through a processor/refiner pipeline 

For smaller operators, he simplifies the concept: hedging = selling at today’s price to lock it in, because tomorrow is speculation. 

Why This Matters More Than Ever 

Ed and Rich emphasize that converter values have moved fast. They mention: 

• Platinum’s huge monthly surge 

• Palladium up around 80% 

• Rhodium up around ~85% 

• And converter values roughly doubling in the last 4–6 months in the marketplace 

The core message for 2026: with this kind of volatility, profits go to the businesses that move inventory, stay liquid, and lock pricing rather than gambling on what the market might do next. 

Stay Informed: Explore More Insights and Exclusive Content from noble6!

Thank you for joining us in exploring the latest insights from the precious metals industry. For more in-depth articles and exclusive interviews, visit the rest of our blog. Don’t forget to subscribe to our YouTube channel for the latest videos and updates. Stay informed and ahead in the industry by subscribing today!