TLDR
- Gold hit $31.1 trillion market cap to reclaim the top spot among all assets by market capitalization
- Silver briefly overtook Nvidia for second place with an 82.7% surge to $82.70 per ounce before falling back
- Silver gained 176% in 2025 compared to gold’s 70.3% gain, driven by both safe-haven demand and industrial use
- The Silver Institute reports a fifth straight year of supply deficit with demand at 1.2 billion ounces versus 1 billion ounces supply
- Crypto analysts point to similarities between silver’s multi-year cup-and-handle pattern and Bitcoin’s current chart structure
Gold reclaimed its position as the world’s largest asset by market capitalization at $31.1 trillion as 2026 began. The precious metal’s return to the top spot comes as investors seek safety during global uncertainty.
Silver made headlines by briefly overtaking Nvidia to become the second-largest asset by market cap. The metal reached $82.70 per ounce in early Asian trading before settling back to $80.80. At press time, silver and Nvidia continue trading places for the second position.
The precious metal’s performance has outpaced gold significantly. Silver rose 176% in 2025 compared to gold’s 70.3% gain. Year to date in 2026, silver is up nearly 12% while gold has gained 3.2%.
Economist Peter Schiff called it “likely silver’s best start to a year ever.” The rally pushed silver’s market cap temporarily above Nvidia’s $4.55 trillion valuation.
Industrial Demand Drives Silver Higher
Silver serves two main purposes in the market. Investors buy it as a safe-haven asset like gold. The metal also plays a critical role in manufacturing electronics, solar panels, artificial intelligence hardware, and electric vehicles.
Industrial demand accounts for approximately half of global silver consumption. This dual function gives silver unique support compared to other precious metals.
The Silver Institute reported the market’s fifth consecutive annual deficit in 2025. Global demand stands at 1.2 billion ounces while mine production and recycling only supply 1 billion ounces. This 200 million ounce shortfall continues to support prices.
Analyst Sunil Reddy stated that “$100 silver is now firmly on the table for January.” Wall Street Mav noted that persistent supply-demand imbalance has fueled the rally.
Some estimates suggest that at $135 per ounce, most solar manufacturers would lose money on panel production. Higher prices could eventually reduce industrial demand through what economists call demand destruction.
Bitcoin Analysts Draw Comparisons
Cryptocurrency analysts are watching silver’s rally for clues about Bitcoin’s next move. Merlijn The Trader pointed out that silver completed a multi-year cup-and-handle chart pattern before its surge.
BITCOIN IS QUIETLY BUILDING A CUP & HANDLE ON THE WEEKLY.
Long base.
Slow accumulation.
Maximum boredom.Silver did this for years… then exploded.
When this structure resolves…
It rarely resolves gently. pic.twitter.com/ItfUmw3XlH— Merlijn The Trader (@MerlijnTrader) January 6, 2026
The analyst noted Bitcoin is building a similar structure on its weekly chart. The comparison suggests Bitcoin could break out sharply once the pattern completes.
Crypto Rover observed that gold and silver surged after breaking out of monthly accumulation zones. According to the analyst, Bitcoin has not confirmed a similar breakout yet but could trigger a catch-up rally when it does.
Owen Lau, managing director of Clear Street, said the Federal Reserve’s monetary policy decisions in 2026 will be “one of the key catalysts for the crypto space.” Lower interest rates could drive retail and institutional investors toward risk assets including digital currencies.
Bitcoin currently sits in eighth position among assets by market capitalization. Market participants are watching for potential capital rotation from precious metals into cryptocurrency, though timing remains uncertain.
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