Silver Rate: While markets have been fixated on artificial intelligence and soaring tech valuations, silver has quietly rewritten the global asset leader board. The precious metal has overtaken Nvidia
to claim the position of the world’s second-largest asset by market capitalisation (mcap), with only gold now ahead of it.
Silver’s jump comes after prices rallied beyond $84 per ounce, lifting its total market value above $4.7 trillion. The move puts it ahead of Nvidia, the biggest beneficiary of the AI-led equity rally, and places it above a string of dominant technology companies.
The reshuffle has altered the global rankings. Gold continues to dominate with a market value of $31.5 trillion, followed by silver at $4.7 trillion. Nvidia now stands at $4.6 trillion, ahead of Apple at $4 trillion, Alphabet at $3.8 trillion and Microsoft at $3.6 trillion, while Bitcoin lags further behind at $1.8 trillion.
Silver’s climb into second place is striking not just because it has overtaken Nvidia, but also because of the pace of the rally. Year-to-date, silver has delivered gains of around 170%, more than double gold’s already strong rise of about 72%.
In India, silver has crossed the Rs 2,50,000 mark to stand at Rs 2,51,000 per kg.
Why silver is rallying
Market participants point to a rare convergence of supply-side constraints and strong demand from both investors and industrial users.
“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,” Pranav Mer of JM Financial Services said.
Ponmudi R, CEO of Enrich Money, said silver has clearly outperformed gold in the current cycle. “Silver continues to dominate the precious-metals space, significantly outperforming gold in this cycle. COMEX Silver recently posted fresh all-time highs near $82.67 and is currently trading around the $80.40 per ounce region. The rally is being driven by a powerful combination of safe-haven demand, accelerating industrial usage, and persistent structural supply deficits. The impulsive bullish structure remains intact, with corrections staying brief and contained. Upside potential now points toward the $84–$87 zone, while strong support lies between $75 and $72. Silver is on track for one of its strongest annual performances in decades.”
Kaynat Chainwala, AVP, commodity research at Kotak Securities, said multiple factors are reinforcing the uptrend. “Silver extended its remarkable rally, driven by 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.”
She added that investment appetite remains strong. “Silver-backed ETFs continue to attract buying interest, with global holdings on pace for a sixth consecutive week of inflows.”
Supply concerns have further strengthened bullish sentiment. China, the world’s largest consumer of silver and a major producer of solar panels, electronics and electric vehicles, has announced export restrictions starting January 1, 2026. The move, which requires companies to obtain licences and is expected to remain in place through 2027, could disrupt global supply chains.
What next for silver prices?
Some analysts warn that the speed of the rally points to near-term overheating, even as the broader trend remains constructive.
Unlike gold, whose demand in 2025 has been driven largely by safe-haven buying and lower opportunity costs, silver has benefited from a combination of investment flows and strong industrial consumption, particularly linked to the green energy transition.
Axis Securities, in a recent report, highlighted a structural shift in demand. “Demand from the Solar Photovoltaic (PV) sector has more than doubled in just four years, from 94.4 Moz in 2020 to 243.7 Moz in 2024. Solar alone accounted for nearly 21% of total demand in 2024, fundamentally altering the metal’s usage profile.”
The brokerage added that supply constraints are unlikely to ease soon. The silver market has remained in deficit since 2021, with a cumulative shortfall of nearly 700 million ounces between 2021 and 2025. Refinitiv estimates cited in the report suggest the deficit will persist in 2026 as well, with a projected shortfall of more than 100 million ounces.
Highlighting recent stress in the market, Axis Securities said, “Fears of impending US import tariffs have triggered a flight of physical metal toward US markets, sparking a historic ‘squeeze’ in the futures market. Throughout the year, COMEX futures have persistently traded at a premium to London spot prices.”
Taken together, these factors suggest that while silver may see periods of consolidation after its sharp run-up, the metal’s newfound place near the top of the global asset table reflects deeper, longer-term shifts in demand and supply dynamics.
