All precious metals have inherent value and even with time, the metals do not depreciate, making them a great portfolio item to diversify and hedge your investments against inflation. Although precious metals have inherent value, some are perceived to be more valuable than others and this is reflected through each metal’s live spot pricing. Read more to find out the most valued precious metal and the reasons why.

1. Gold

Making the top of our list, gold holds the crown for the precious metal with the most perceived value. How has gold cemented itself at the top, beating out platinum, which for decades before was seen as more valuable than gold? The difference between platinum and gold is that platinum sees more value and usage in industries such as the automobile industry. While gold also has its usages in sectors such as in semiconductors, and electronics, gold also has the perk of being seen as a vehicle for investment. As electric vehicles and hybrid cars become more mainstream and popularized, the use of platinum in catalytic converters saw a decrease, causing the perceived value of platinum to plummet. On the other hand, gold is steadily increasing in popularity with investors and is seen in constant demand in industries. According to the World Council of Gold, industrial demand for gold in the first quarter of 2024 grew by 10%, supplemented by the recovering electronics industry. Overall, there was a 13% growth rate in the demand for gold. On the investor’s side, gold is seeing growth because of major macroeconomic factors and shifts. Gold is seen as a safe haven investment during turbulent times and in 2024, a year with high inflation, shifts in key leadership positions around the world and conflicts globally it’s an uncertain year for the dollar value and the stock market. The instability of normal avenues of investment led investors to turn to gold as a safe haven and hedge against inflation, upping demand. 

2. Palladium 

Palladium used to be half the price of platinum but in the years since, it has caught up in value and now is trading at almost the same price. Palladium is a silvery metal most commonly used in manufacturing electronics and automobiles. Platinum is more popular as a catalytic converter in diesel engines and palladium is more popular as a component of catalytic converters for gasoline engines. Since the Volkswagen emission scandal, diesel cars have seen a decline in sales, reducing platinum’s demand in the automobile sector. Palladium’s supply is more limited than platinum, and the smaller supply drives up its prices.

3. Platinum 

There’s a misconception that platinum is more valuable than gold stemming from both its standing of being more prestigious in pop culture and its long history of being priced higher than gold. 10 years ago, platinum prices were solidly above the price of gold, first because of its booming industrial usage and secondly because platinum is much rarer than gold. There’s less platinum mined globally than gold. According to Forbes before 2016, there were only 6 other times when platinum prices dipped below gold: 

1. 2008 following the aftermath of Lehman’s bankruptcy 
2. During the 1991 recession 
3. 1984 during the peak of the strong dollar disinflation 
4. 1982 when the global stock market hit a once-in-a-generation low 
5. 1980 when gold surged in price 
6. 1974 when gold hit it big 

Although platinum was more valued than gold in the past, it does not reflect the current reality of the precious metals industry. In 2014, there were turbulent signs that the price of platinum was lagging behind gold, and just a few years after, gold had permanently surpassed platinum. One of the reasons platinum prices stagnated was the volatile demand for platinum after the introduction of electric vehicles. The biggest use of platinum decades before was in the automobile industry as a key component in diesel cars’ catalytic converters. The cultural and societal shift towards cleaner energy fueled consumers' decision to drive electric cars instead has plateaued the demand for platinum. Platinum is not as popular as gold for investors because of its volatile price, stalling demand in this particular industry as well. Due to various factors, platinum value has plateaued allowing gold to reign supreme as the most valuable precious metal. 

4. Silver 

Silver is the cheapest precious metal option and despite its popularity, many agree that it is undervalued compared to gold. Silver, while valued, is much more abundant than gold, and the rarity of the metal plays into how valuable we perceive it to be. Silver is much easier to mine and is more accessible, and thus it’s priced lower than gold. Silver also has more industrial uses than gold, so the price is more influenced by economic changes compared to gold. It’s the best conductor of electricity amongst all precious metals, and it’s invaluable in technological industries such as smartphones and solar panels. However, because of its low price point, silver is a great entry metal to start with. Silver has many of the same properties as gold, such as being a hedge against inflation and having long-term value. Arguably, silver is currently undervalued in the precious metals market. Currently, the gold to silver ratio is around 1:80 but the actual ratio of gold to silver in the Earth’s crust is 1:16. The current price of silver does not reflect this ratio, leading investors to believe silver is undervalued and are waiting for the silver price to catch up to the gold/silver ratio in the Earth’s crust.

Check here for live metal prices.