Gold prices have reached historic highs, now trading above inflation-adjusted records from 1980 and significantly exceeding its long-term trend. However, history suggests gold purchased at such elevated prices often delivers poor returns.
Currently, gold appears overvalued compared to other commodities, trading at record ratios against oil, silver, and especially platinum. Meanwhile, platinum is trading 25% below its 50-year average and at its cheapest-ever level relative to gold.
While gold benefits from economic uncertainty and concerns about the dollar, industrial metals like platinum face challenges from potential economic downturns and the electric vehicle transition, though recent EV slowdowns and supply constraints may support platinum demand.