Historically, platinum price has always been above gold. However, over the last decade, the conflict between these two precious metals has significantly deteriorated in favor of gold. So, will platinum regain its value in the coming period and catch up with gold? In this section, we will try to find the answer to this question through charts.
In the chart above, gold in blue is compared to platinum in red. The correlation between them has broken down in mid-2015 and the price of gold rose significantly above the price of platinum for the first time in history.
The deteriorating correlation can be seen much more clearly in the platinum and gold chart created since 1880. Platinum prices in black have always been above gold for 100 years except for the last period.
The extraordinary nature of the trend that has been in favor of gold for the last decade can be better understood in the Gold/Platinum Ratio Chart. In 2011, platinum was more valuable and the Gold/Platinum Ratio was 0.74. In 2021, the rate come to a value of 2.21 and then 1.44. Today, the gold/platinum ratio is 2.85. In other words, the market price of gold is almost three times higher than the market price of platinum.
Let's look at the same graph starting from 1991. Values below one indicate that platinum is more expensive. This was the general picture before 2015. A situation similar to today's jump has never occurred.
Gold is not overvalued. We discussed this fact in our gold article. So what does this platinum chart show us? It shows that platinum price is undervalued.
In the next section, we are examining palladium graphs, comparing palladium to platinum, and evaluate future predictions.
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