Gold to Platinum Ratio - All Time

Gold : Platinum Ratio All Time

The gold : platinum ratio is the relationship between the gold spot price and the platinum spot price. It tells us how many troy ounces of platinum would be needed to buy one oz t. of gold. It is an important tool for investors, as it provides a way of deciding which of the two metals may be a better investment at a certain moment in time.

Using the Ratio to Aid Your Decision

By looking at the all time ratio for gold and platinum one could see which metal has historically been more valuable than the other, and use this information in comparison with the current ratio in order to influence their decision.

For example, the above chart tells us that throughout history gold has tended to be less expensive than platinum, with the ratio only rising above 1 on a few occasions, the most being 2015 until the present. An investor may take this as an indicator that it is currently a good time to buy platinum, expecting the price to eventually return to being higher than that of gold.

Similarly, we can see that June 2008 would have been an excellent time to invest in gold, as the succeeding 6 months saw the ratio shift from 0.4 to around 1 when the gold price increased and platinum lost around half its value. However this is, of course, something that we can only know for certain in hindsight, and the best way to invest is by having a diverse portfolio.