The Gold to Platinum ratio is currently trading at 2.565, which is a new all time high and far away from the 2008 low of 0.449. The chart below highlights the current Gold/Platinum ratio on a monthly periodicity, the underlying choppiness indicator value of 27 tells us that this market is panic mode and a massive turnaround can soon be expected.
Similar short- term price aberation has been witnessed in the Silver market in March 2020, when the Gold to Silver ratio spiked to over 110 and has since then traded around the 83 level as can be seen the chart below. It is however, still far away from the long-term level of 30.
An investment in Platinum at current prices ($930) would appear to be a low risk strategy with limited downside risk at a time when the US deficit poses significant risk to the global economy. According to the World Platinum Investment Council, in 2023, the platinum market is estimated to have recorded its largest single annual deficit of more than 1 Mio ounces. Their analysis highlights that the platinum market will remain undersupplied through at least 2028.
