Silver topples Nvidia to become world's second most valuable asset after gold

By Admin

29 Dec, 2025

Introduction
In a remarkable shift in global asset rankings, silver has briefly overtaken Nvidia to become the world’s second most valuable asset after gold. This historic crossover highlights a deeper rotation underway in global markets, where investors are increasingly moving away from richly valued technology stocks toward tangible, hard assets.

Silver Overtakes Nvidia: A Historic Moment
Silver’s total above-ground market capitalisation climbed to an estimated $4.65 trillion, surpassing Nvidia Corp.’s market value of $4.60 trillion, according to Bloomberg data. This reshuffling occurred as silver prices surged past $80 per ounce for the first time, marking an unprecedented moment in the modern digital era. While gold remains the undisputed most valuable asset globally, silver’s move into second place signals a major change in investor sentiment.

Volatility After the Surge
The rally, however, was followed by sharp volatility. Spot silver jumped as much as 6% to an intraday high of $84.01 an ounce before retreating as investors booked profits. By 10:30 am in Singapore, prices had slipped nearly 1% to around $78.50 per ounce. Despite this pullback, the brief crossover of silver overtaking Nvidia remains symbolically significant.

A Once-in-a-Generation Rally
Silver is still on track for an annual gain of more than 160%, its strongest performance since 1979. This extraordinary rise caps a year-long rally across precious metals, driven by elevated central-bank purchases, strong inflows into exchange-traded funds, and three successive interest rate cuts by the US Federal Reserve. Lower borrowing costs have boosted non-yielding assets like commodities, with traders already pricing in the possibility of further rate cuts in 2026.

Warnings of a Potential Bubble
Not all market participants are convinced the rally is sustainable. Tony Sycamore, market analyst at IG Australia, has described the surge as a “generational bubble” in silver. With new silver mines taking up to a decade to develop and capital rapidly flowing into precious metals, uncertainty remains over when the rally might lose momentum.

The Physical Squeeze Behind the Rally
At the core of silver’s ascent is a tightening physical supply combined with rising demand. Unlike gold, which is primarily held for investment, nearly 50% of annual silver production is consumed by industrial applications. Rapid expansion in the solar photovoltaic sector and the electrification of the automotive industry have significantly reduced warehouse inventories in major hubs such as London and New York, pushing stocks to multi-decade lows.

AI Boom Fuels Silver Demand
Ironically, the same artificial intelligence boom that propelled Nvidia to record valuations has intensified the silver squeeze. Silver’s unmatched electrical conductivity makes it essential for high-performance connectors and circuitry used in data centres and AI hardware. As AI infrastructure expands globally, industrial demand for silver continues to rise sharply.

Hard Asset Rotation Gains Momentum
Investors have also turned to silver as a more affordable alternative to gold, which breached $4,500 an ounce earlier this month. Often referred to as the “poor man’s gold,” silver has acted as a high-beta play on the precious metals complex, significantly outperforming gold in the fourth quarter. This trend reflects growing caution among asset managers about stretched equity valuations, particularly as the Nasdaq 100 faces pressure from persistent inflation concerns.

Silver’s New Role in the Global Financial System
While silver is known for sharp corrections and ongoing volatility, its $4.65 trillion valuation underscores its growing importance in global markets. The brief moment when silver surpassed Nvidia is more than a statistical anomaly it represents a broader shift toward hard assets as investors seek protection against currency debasement and economic uncertainty.

Conclusion
Silver’s rise to become the world’s second most valuable asset, even temporarily, marks a defining moment in today’s financial landscape. As technology valuations face scrutiny and demand for physical commodities strengthens, silver’s role as both an industrial metal and a monetary asset is being fundamentally redefined.