Silver has subtly changed the global asset leader board as markets have been obsessed with artificial intelligence and skyrocketing tech prices. With only gold now surpassing it, the precious metal has surpassed Nvidia to become the second-largest asset in the world by market capitalization (mcap).
Silver’s market value surpassed $4.7 trillion after prices surged above $84 per ounce. With this gain, it surpasses a number of leading technology businesses and Nvidia, the largest beneficiary of the AI-led share rise.
The global rankings have changed as a result of the reorganization. With a market value of $31.5 trillion, gold is still the most valuable commodity, followed by silver at $4.7 trillion. At $4.6 trillion, Nvidia is currently ahead of Apple ($4 trillion), Alphabet ($3.8 trillion), Microsoft ($3.6 trillion), and Bitcoin ($1.8 trillion).
Not only has Silver surpassed Nvidia to grab second place, but the speed of the rally is also noteworthy. Silver has gained around 170% so far this year, surpassing the already impressive 72% increase in gold.
Silver now costs Rs 2,51,000 per kg in India, surpassing the Rs 2,50,000 threshold.
Why silver is on the rise
Participants in the market highlight a unique combination of supply-side limitations and robust demand from investors and industrial users.
According to Pranav Mer of JM Financial Services, “silver is supported by strong industrial demand from new-age sectors, relatively cheap pricing compared to gold, and a sharp rally in the industrial metals after Trump’s tariff announcement in April 2025.”
Silver has obviously outperformed gold in the present cycle, according to Ponmudi R, CEO of Enrich Money. “Silver has outperformed gold in this cycle, maintaining its dominance in the precious-metals market. COMEX Silver is currently trading around $80.40 per ounce after recently setting new all-time highs close to $82.67. Safe-haven demand, rising industrial usage, and ongoing structural supply shortfalls are all contributing factors to the surge. The impulsive bullish structure is still in place, and corrections are limited and short-lived. Strong support is located between $75 and $72, with upside potential currently pointing toward the $84–$87 range. Silver is expected to have one of its best yearly results in many years.
Several reasons are supporting the increase, according to Kaynat Chainwala, AVP of commodity research at Kotak Securities. “A combination of tight physical supply conditions, rising safe-haven demand, strong inflows into silver-backed ETFs, and growing expectations of US Federal Reserve rate cuts drove silver’s remarkable rally.”
The appetite for investments is still high, she continued. “Global holdings of silver-backed ETFs are on pace for a sixth consecutive week of inflows, demonstrating the ongoing buying interest.”
Bullish attitude has been reinforced by supply concerns. Export limitations will take effect on January 1, 2026, according to China, the world’s biggest consumer of silver and a significant manufacturer of solar panels, electronics, and electric cars. Global supply chains may be disrupted by the shift, which is anticipated to last until 2027 and requires businesses to obtain licenses.
What will happen to silver prices next?
Even though the overall trend is still positive, several analysts caution that the rally’s speed indicates near-term overheating.
Silver has profited from a combination of investment flows and robust industrial use, particularly associated with the green energy revolution, in contrast to gold, whose demand in 2025 has been mostly driven by safe-haven buying and lower opportunity costs.
In a recent research, Axis Securities emphasized a structural change in demand. From 94.4 Moz in 2020 to 243.7 Moz in 2024, the demand from the solar photovoltaic (PV) industry more than doubled in just four years. The metal’s usage profile was drastically changed in 2024 when solar energy alone accounted for over 21% of global demand.
Supply shortages are not expected to improve very soon, the brokerage added. Since 2021, the silver market has been in deficit, with a total deficit of around 700 million ounces between 2021 and 2025. According to Refinitiv projections mentioned in the article, there would likely be a shortfall of more than 100 million ounces in 2026.
“Fears of impending US import tariffs have triggered a flight of physical metal toward US markets, sparking a historic ‘squeeze’ in the futures market,” stated Axis Securities, highlighting recent market stress. COMEX futures have consistently traded higher than London spot prices throughout the year.
When considered collectively, these reasons indicate that although silver may experience periods of stabilization following its dramatic surge, the metal’s recent rise to the top of the global asset table is indicative of more profound, long-term changes in supply and demand dynamics.
