Comparing the price of platinum relative to gold
Platinum is trading at 80% discount to gold
For most of modern history, platinum was more expensive than gold—sometimes 2x the price. That changed around 2015. Today, platinum trades at a historic discount to gold, making it potentially attractive for contrarian investors betting on mean reversion.
Extreme discount. Platinum is historically cheap relative to gold. Potential contrarian opportunity.
Platinum trading below gold. This is the "new normal" since 2015, driven by structural changes in demand.
Historical norm. Platinum traded above gold for decades due to rarity and industrial demand.
Volkswagen's "Dieselgate" devastated the diesel car market. Platinum is used in diesel catalytic converters, and demand collapsed as consumers abandoned diesel vehicles.
EVs don't need catalytic converters at all. As the auto industry shifts to electric, a major source of platinum demand is disappearing.
Central bank buying, inflation fears, and geopolitical tensions have driven gold higher while platinum lacks the same monetary demand.
South African platinum mines have maintained production despite weak prices, keeping supply elevated relative to demand.
| Year | Ratio | Event |
|---|---|---|
| 1980 | 0.70:1 | Gold mania peak |
| 1985 | 1.10:1 | Platinum premium returns |
| 1990 | 1.20:1 | Auto catalysts demand |
| 2000 | 1.60:1 | Platinum supply concerns |
| 2005 | 1.80:1 | Platinum peak premium |
| 2008 | 2.20:1 | All-time high premium |
| 2011 | 0.95:1 | Gold catches up |
| 2012 | 0.85:1 | Crossing point |
| 2015 | 0.80:1 | Diesel emissions scandal |
| 2016 | 0.75:1 | Platinum discount deepens |
| 2018 | 0.65:1 | EV transition fears |
| 2020 | 0.50:1 | Gold rally, platinum lags |
| 2022 | 0.48:1 | Historic discount |
| 2024 | 0.35:1 | Extreme discount |
| 2026 | 0.20:1 | Current |
The Platinum to Gold ratio is calculated by dividing the price of platinum by the price of gold. A ratio above 1.0 means platinum is more expensive than gold; below 1.0 means platinum is cheaper.
Platinum's discount to gold is driven by: the diesel emissions scandal (2015), declining auto catalyst demand due to EVs, lack of central bank buying, and sustained mine production. Meanwhile, gold has benefited from safe-haven demand and central bank purchases.
It's possible but uncertain. Bulls point to hydrogen fuel cell demand and extreme undervaluation. Bears argue the structural shift away from internal combustion engines is permanent. The ratio could remain low for an extended period.