The Platinum:Palladium and Gold:Platinum Ratios, plus the decline in supply growth, suggest that we could see much higher platinum prices in the years to come – perhaps by as much as 160.6% were its pricing to revert back to the historical mean.
The comments above and below are from the original article by PalisadeResearch.com which has been edited ([ ]) and abridged (…) to a limited degree by munKNEE.com to provide a faster and easier read.
Platinum:Palladium Historical Ratio
In August 2001, palladium…crossed the platinum price…[but as soon as that happened] platinum began to rally as well, entering a bull market that would last the better part of a decade and witness a 450% move. The current price of platinum is $940/ozt, while palladium is trading at $890/ozt. That provides a current ratio of 1.06, compared to the historical average of 2.76. If palladium holds steady at current prices, platinum would have to appreciate to $2,450/ozt. to revert back to the historical mean!
Gold:Platinum Historical Ratio
Another historical relationship worth examining is the gold to platinum ratio. Historically, platinum has traded higher than gold 94% of the time. Bucking the historical trend, gold has traded higher than platinum since the end of 2014.
Declining Supply Growth
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