Catalytic converters are devices that are used in automobiles to reduce emissions of pollutants. They work by converting harmful gases such as carbon monoxide and nitrogen oxides into less harmful gases such as carbon dioxide and water. Catalytic converters use a variety of metals, including platinum, palladium, and rhodium, as catalysts to facilitate the chemical reactions that convert the gases.
These metals are critical to the performance of the catalytic converter and are an important part of the global demand for platinum group metals. Catalytic converters are not themselves investments, but the metals that are used in their production, such as platinum, palladium, and rhodium, can be good investments.
These metals are valuable because they are rare and in high demand from the automotive industry. The demand for catalytic converters is likely to continue to grow as more and more countries implement stricter emissions regulations. This means that the demand for the metals used in catalytic converters is also likely to grow, leading to potential price appreciation for these metals.
Additionally, these metals are physical assets that retain their value over time, making them good hedges against inflation. Investing in these metals can provide diversification to a portfolio, helping to reduce volatility and increase the overall risk-adjusted returns.
xMetals offers an easy and efficient way to own and trade precious metals. Every token is backed by 1 troy ounce of allocated, investment grade, bullion that is held in secure, world-class, storage facilities. Users are even able to redeem their tokens for physical metals bars, in addition to being able to freely transfer their tokens 24/7/365. Current offerings include: xPlatinum (xPT), xPalladium (xPD) and xRhodium (xRH), the 3 metals used to make catalytic converters.
