ok. let me take an extract from howstuffworks..
In the catalytic converter, there are two different types of catalyst at work, a reduction catalyst and an oxidation catalyst. Both types consist of a ceramic structure coated with a metal catalyst, usually platinum, rhodium and/or palladium. The idea is to create a structure that exposes the maximum surface area of catalyst to the exhaust stream, while also minimizing the amount of catalyst required, as the materials are extremely expensive. Some of the newest converters have even started to use gold mixed with the more traditional catalysts. Gold is cheaper than the other materials and could increase oxidation#, the chemical reaction that reduces pollutants, by up to 40 percent
-_- sigh.