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Gold : Platinum 5 Year Ratio Our regularly updated gold: platinum ratio charts allow you to determine which of the metals is a stronger investment by tracking and comparing the historical and current ratios. The gold : platinum ratio is the proportional relationship between the respective prices of gold and platinum. In simple terms it demonstrates how many troy ounces of platinum you can buy with one oz t. of gold. It is a fairly simple ratio to understand; when it is above 1, platinum is cheaper than gold. Using the Ratio The gold to platinum ratio is a useful tool to refer to when deciding which of the metals is the better investment. Although it is always a good idea to diversify your investment in different metals, you can use the ratio to determine whether it may be a better time to buy gold or platinum at any given time. Both metals are incredibly rare and much more expensive than silver. However, of the two, platinum is by far the rarest. Although it is not the case right now, platinum has generally been more expensive than gold. It is more difficult to find and has much higher demand due to its use in machinery such as catalytic converters. Periods in which gold has been more expensive than platinum are rare, and have always been relatively short lived. With this in mind, an investor may view any moment where the ratio is below 1 as an ideal moment to buy platinum, expecting it to return to its more historically common relationship. |
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