Silver has surged past Nvidia to become the world's second-largest asset by market capitalization. This milestone marks a significant shift in the global financial landscape, with silver now trailing only gold in overall market value.
The precious metal's resurgence is attributed to a confluence of factors, propelling its market capitalization to over $4.7 trillion. In comparison, Nvidia, the AI chip giant, holds a market cap of $4.63 trillion as of December 2025. Gold, maintaining its top position, boasts a market capitalization of $31.5 trillion.
Silver's impressive year-to-date gains of approximately 170% have outstripped even gold's notable 72% rise. While gold has traditionally benefited from central bank purchases and its reputation as a safe-haven asset, silver's unique dual role as a precious metal and an industrial component has fueled its exceptional performance.
The demand for silver is driven by its critical applications in various sectors, including electric vehicles, solar panels, electronics, and AI data centers. As governments worldwide prioritize energy transition and data infrastructure expands, the demand for silver remains robust. This surge in demand has exposed a growing supply deficit, with mining output struggling to keep pace with consumption, leading to historically low inventory levels.
Lower interest rates have further amplified the appeal of non-yielding assets like silver. The weakening US dollar and geopolitical uncertainty have also contributed to the precious metal's strength. Silver prices have hit record highs, reaching $81 per ounce. In Shanghai, silver trades at $85 per ounce, exceeding US spot prices due to new Chinese export controls anticipated in 2026.
The shift in market capitalization rankings reflects a broader trend of precious metals outperforming major equity benchmarks. In 2025, gold and silver collectively added $16 trillion in market value. Silver's gains have dwarfed the S&P 500's returns, surging approximately eight times more than the US equity benchmark.
While analysts maintain a strong buy consensus for Nvidia, silver's ascent underscores the increasing importance of its role as both an industrial metal and a store of value in the current economic climate. The metal's rise to the second-largest asset globally marks a noteworthy shift in investment strategies and highlights the growing demand for resources essential to technological advancement and sustainable energy solutions.
