Gold versus Platinum

27 Oct 2014

The gold price has remained in the low $1,200’s during the month of October 2014. Gold demand in the June 2014 quarter was 972 tonnes, down 15% on the June 2013 quarter. Total gold supply in the June 2014 quarter was 1,078 tonnes, up 10% from the same period last year. Should the gold supply continue to outweigh gold demand, the gold price is expected to remain in the $1,200s over the next few months and into the new year.

Historically, platinum has traded at a $200 to $400 premium to gold. During 2008, platinum was trading as high as $2,170 before its dramatic tumble in late 2008 to reach a five year low at $763 due to the financial crisis. Platinum is rarer in nature than gold and annual supply is approximately 135 tonnes per annum. Unlike gold which is either held in bank vaults or used in jewellery, more than 50% of annual production of platinum is used for industrial purposes, predominantly in the automobile industry with 40% used in jewellery and 10% for investment purposes.

Will platinum continue to fall and trade below gold for the first time?

Is this the right time to buy platinum?


KITCO Gold and Platinum London PM Fix – US$

Gold vs Platinum


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