The Gold to Platinum Ratio
Platinum is an important Precious Metal because of its diversification to any investor's portfolio and its unique place in history with a lower price point than Gold. The Gold to Platinum ratio is an important historical lesson because it helps identify just how rare Platinum is and how its value has changed over time in relation to Gold.
The Gold to Platinum ratio indicates how much Platinum it takes to buy Gold. It indicates the relative strength of Gold prices compared with Platinum prices. Investors can use the ratio as a timing indicator when deciding when to buy Gold or Platinum.
Platinum has become one of the most intriguing metals because it has historically traded at a higher price than Gold. That is an indication of two things, Platinum being rarer than Gold, and having more industrial uses. As of March 2017, you can buy Platinum at a lower price than Gold. Other price factors include social and political factors, demand, market speculation and mining missions. You can see the existing Platinum spot price and see how it has changed over time.
Platinum is more difficult to produce than Gold, and it only comes from very few parts of the world. The top Platinum producing nations as of 2017 are South Africa, Russia, Zimbabwe and Canada. It is no surprise South Africa is the top Platinum producer, as the African country possesses over 80% of the world’s Platinum Group Metal reserves.
WHY PLATINUM IS A GOOD INVESTMENT NOW
Precious Metals prices are difficult to predict from year to year and it is impossible to know for sure if or when Platinum's price will be higher than Gold. History has shown the price will not stay below the Gold price for too long. As the demand for Platinum fluctuates, the price of Platinum will move with it. This is why it is important to monitor up-to-date Platinum spot prices.