The gold-to-platinum ratio compares the price of gold to platinum. Historically, platinum was often more expensive than gold due to its extreme rarity (30x rarer than gold in the Earth's crust) and industrial applications in jewelry and automotive catalysts.
Why is this ratio important?
When gold trades above platinum (ratio above 1.0), it often reflects economic uncertainty as investors favor gold as a safe haven over industrial metals. A ratio below 1.0 traditionally indicated strong industrial demand for platinum. Since 2015, gold has consistently traded above platinum. This ratio is closely watched by investors analyzing economic cycles and precious metals allocation.