Initially, these conditions created a tremendous appetite for gold. However, as gold continued its multi-year rally, its trading ratios moved far beyond historical standards relative to silver, platinum and palladium. This created a compelling "bargain hunting" scenario. Investors began to diversify beyond gold, realizing that silver, platinum and palladium – by historical metrics – were trading at incredibly low ratios compared to gold.

A critical factor in the outsized moves of these other metals lies in their market size. Gold’s mining supply last year was valued at around $460 billion. Silver, by contrast, was only $66 billion – about one-sixth or one-seventh the size of the gold market. Even smaller, platinum and palladium combined accounted for only around $12 billion to $13 billion, roughly 1/32nd the size of the gold market. As investors began to diversify beyond gold, these smaller markets experienced enormous and accelerated price movements.

The intrinsic value of these precious metals is rooted in their limited supply. Gold, for instance, sees about 100 million ounces mined annually. Silver’s production is eight times higher at over 800 million ounces, yet its price is about 1/50th that of gold, suggesting it could still be perceived as undervalued relative to its supply. Platinum and palladium are even scarcer, with just 6 million ounces of each mined annually – only 6% of gold’s supply. This highly concentrated production, primarily from South Africa, Russia and Zimbabwe, makes them highly sensitive to supply or demand shifts.

Silver's recent performance clearly illustrates this relative value shift. A few years ago, one ounce of gold bought over 100 ounces of silver; more recently, it was around 80 ounces. As of mid-January, that figure was below 50 ounces of silver per ounce of gold. While silver has not yet reached its historic high of approximately 25 ounces of silver per ounce of gold, it has certainly made enormous strides in that direction, making the argument that "silver is still cheap" harder to sustain compared to previous years.

Platinum stands out as a compelling, if temperamental, opportunity. For years, its use in diesel engine catalytic converters declined, causing its price to lag. However, with an exceptionally tiny mining supply – just 6% of gold’s and less than 1% of silver’s – platinum is highly responsive to renewed interest. If investor or industrial demand for jewelry or other applications grows, platinum's price, having only recently surpassed its 2007 peak, could see further gains.