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Gold vs Platinum

Platinum traded at a premium to gold for most of the 20th century. The inversion, platinum below gold, began around 2011 and widened sharply in 2015-2016 as diesel vehicle demand fell. The current gold/platinum ratio is near historic highs, making platinum historically cheap relative to gold.

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Gold vs Platinum

Gold vs Platinum chart

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Frequently asked questions

About Gold vs Platinum

Why is platinum cheaper than gold?

Platinum fell below gold in 2011 as diesel vehicle sales declined in Europe and investors shifted from platinum ETFs to gold ETFs. Mine supply is dominated by South Africa (70%+), adding operational risk.

Is platinum a good investment vs gold?

Platinum offers a potential mean-reversion trade if the ratio normalises. It has more industrial demand exposure (auto, hydrogen fuel cells) but less monetary/reserve demand than gold. Risk is higher and liquidity lower.

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