Platinum to Gold Ratio

With gold trading just under $1,600 and platinum trading in the $1,400s, the ratio of platinum to gold has once again moved well below zero.  

Late last year, the ratio of platinum to gold broke below zero for the first time in awhile and then went on to hit its lowest level ever before bouncing back in early 2012.  At the end of the first quarter, the price of platinum had moved back above the price of gold, and it looked like we might get an extended run of outperformance by platinum.  The bounce was short-lived, however, and the ratio moved right back below zero and now sits at 0.89.  

While platinum is more rare than gold, the yellow metal is still the metal of choice for investors looking to hedge against disaster.

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