In recent months there has been a near paradigm shift in the precious metals
market that goes against basic market analysis of supply and demand. Im
referring to the recent change in which gold price became higher than the price
of platinum. This shift occurred during October 2011 and since then has
proceeded with no clear end in sight. Currently, gold price is near $1,664 per
ounce, and platinum price is at $1,530 per ounce, i.e. gold is nearly 8.7% more
expansive than platinum. The chart above presents the development of gold and
platinum during 2011 and 2012 up to date. It shows that during most of the year
platinum was more expansive than gold; this makes sense because platinum is much
less common than gold. According to several sources the worldwide supply for
platinum reached in 2010 188.5 tonnes, while the global gold supply was 4,162
tonnes. Since both metals are linked for being precious metals, its no surprise
that their linear correlation between their prices was strong and positive. The
chart below shows the moving linear correlation between gold and platinum (daily
percent changes) during 2011 and 2012. The chart clearly shows very strong and
positive correlation during
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