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As we mentioned in our prior post, precious metals have been in free fall lately. And while gold has fallen more than 18% from its all-time high reached in August, platinum has gotten hit even harder.

The collapse in platinum is highlighted in the chart below which shows the long-term ratio of platinum to gold. When the line is rising, platinum is outperforming gold. When the line is falling, gold is outperforming platinum.

Even though gold has been plummeting lately, the ratio of platinum to gold has been plummeting as well, which means platinum has been underperforming gold. This underperformance has pushed the platinum/gold ratio to its lowest level since at least 1986 when our platinum price data begins. As shown below, the ratio is currently at 0.89, which means platinum is currently 11% cheaper than gold. Rarely is gold pricier than platinum, but that has been the case now for a couple of months.

Click to enlarge:

Source: Platinum/Gold Ratio Remains Below One