Oil to Natural Gas and Platinum to Gold Ratios

With oil's decline and natural gas' rise over the past few weeks, the ratio of oil to natural gas has declined quite a bit. As shown below, the oil/natural gas ratio hit a 20-year high recently as natural gas collapsed. The ratio is still very high compared to historical levels, but it is down from 27 to 17 since the start of the month.

The platinum to gold ratio has also begun to reverse the downtrend it had been in since early 2008. At the end of 2008, gold actually traded above the price of platinum, bringing the ratio below 1 for the first time in years. With the economy getting back on track, platinum has outperformed gold, and the ratio is back up to 1.28. This is still, however, far below the range that the ratio was trading in throughout most of this decade.

Comments

[cyclingscholar]

In the past the WSJournal has run OpEd's about the ratio of OIL to GOLD. Could you address this ratio as well? Thank you.

2009 Sep 28 03:40 PM

[Wayne Freeman]

I have long watched Platinum (Pt) to Gold (Au) ratio. It was about 2:1 and better when Pt was at $2200 and Au was down in the $700-$850 range. I feel that Pt/Pd are trending back up vs. Au. Over time (6-18 months) we could see Pt back at $1800-$2000 and Pd over $400. Another historical trend to watch is that Pt leads Au. With Pt moving up, Au should follow upwards as well.

2009 Sep 28 05:49 PM

[learnmoney]

What are you trying to tell us?

2009 Sep 30 06:14 AM