Ratios between Gold, Platinum and Silver
Rather than focusing on absolute prices, this article looks at price ratios between gold, platinum, and silver over long time horizons.
Ratios often reveal structural changes that are harder to see in nominal price charts.
Code is here.
https://tkgwithpython.blogspot.com/2026/01/ratios-between-gold-platinum-and-silver.html
This is not an investment thesis, nor a trading strategy.
It is simply an observation about long-term relative movements.
Gold / Silver Ratio: Volatile over the Past 10 Years
Over the past one decades, the Gold/Silver ratio has shown highly volatile behavior.
• Sharp spikes during periods of financial stress
• Rapid reversals when panic subsides
• Strong sensitivity to monetary policy, inflation expectations, and market sentiment
This volatility suggests that the Gold/Silver ratio functions more as a financial stress indicator than as a stable long-term trend.
In other words, it reflects short- to medium-term sentiment shifts, rather than slow structural change.
Platinum / Silver Ratio: A Clear Long-Term Downtrend
In contrast, the Platinum/Silver ratio tells a very different story.
• Over roughly 10 years, the ratio has declined from around 75 to approximately 35
• The trend is relatively smooth compared to Gold/Silver
• Temporary rebounds exist, but the long-term direction remains downward
This suggests a structural shift, not merely cyclical noise.
If — and this is an important condition — this trend were to continue for another 10 years at a similar pace, it is not impossible that platinum prices could approach, or even fall below, silver prices on a relative basis.
This is not a prediction, but a simple extrapolation of observed long-term behavior.
Possible Structural Interpretation
One way to interpret this divergence is through industrial usage structure:
• Platinum demand is relatively concentrated in specific industries
• Silver demand is widely distributed across electronics, energy, medical, and emerging technologies
A broader and more diversified usage base can support relative strength over long horizons, even if short-term price movements remain volatile.
A Note of Caution
These ratio observations are not suitable for investment, speculation, or gambling decisions.
• Ratios can overshoot
• Trends can stall or reverse
• Supply-side constraints may act as long-term floors
However, keeping such long-term ratio trends in the back of one’s mind may help provide context when thinking about commodities, industrial change, and shifting material importance.
Conclusion
• The Gold/Silver ratio has been highly volatile over the past 10 years
• The Platinum/Silver ratio shows a clear and persistent downward trend
• If this structural trend continues, relative price convergence is not unthinkable
• These observations are best treated as contextual knowledge, not actionable signals
Sometimes, ratios do not tell us what to do —
they simply tell us how the world may be quietly changing.