Silver poised to overtake NVIDIA to become the second-most valued asset, says analyst

Why is silver price up?

Silver has overtaken Apple Inc and Alphabet in terms of market capitalisation, and is inching towards overtaking NVIDIA Corporation to become the world’s second-most valued asset after gold.

Currently, silver sits at a market capitalisation of $4.220 trillion, as per companiesmarketcap.com, just 8.1 percent behind NVIDIA at $4.592 trillion, whereas gold commands the market capitalisation of $31.598 trillion, as of Friday (December 26, 2025).

The spot price of silver on Comex surpassed the $75 an ounce on Friday and continued to surge to a record-level peak. The domestic futures price on MCX hit an all-time high at Rs 2,33,115 per 1 kilogram during the day’s trading session. The price of NVIDIA, on the other hand, stood at $188.61 (2:54 pm IST), representing a decline of 0.32 percent in the last 24 hours.

“The way silver is moving, it is likely to be the second-most valuable asset, surpassing NVIDIA,” said Surendra Mehta, national secretary, India Bullion and Jewellers Association (IBJA).

“With almost a $7 difference between the price of silver on Comex and Shanghai (stock exchanges), the global arbitrage system and price discovery mechanism of silver has collapsed. Normally, this difference is less than $1. The silver price may further surprise everyone, as the white metal is moving from the LBMA vault to China for better pricing,” said Mehta.

Outlook: Will silver continue its momentum?

Silver prices on the Multi-Commodity Exchange of India (MCX) jumped by a whopping 153.14 percent in a year– from Rs 91,600 on December 26, 2024, to Rs 2,31,879 on December 26, 2025; whereas, gold has given a return of 79.75 percent in the same period, rising from Rs 77,460 to Rs 1,39,233 per 10 grams of 24-carat purity.

The rally has been driven by a mix of global rate cuts, rising liquidity, a softer dollar and structurally strong industrial demand. Silver’s recent surge has been fueled by growing anticipation of another rate cut by the US Federal Reserve, with the next FOMC meeting scheduled for January 27-28, 2026. Traders are now betting on 84.5 percent chances of a rate cut by 350-375 basis points (bps).

Another factor that has softened the safe-haven flows is the war between Israel and Iran, as well as rising tensions between the United States and Venezuela.

“The acute supply tightness for metals is keeping prices sharply higher. Big bullion banks are being forced to cover their paper silver with actual physical silver, which is not available, and are also forcing them to empty their warehouse stock from Comex.

“China is also ready to set export restrictions on silver from January 1, 2026. There are no sanctions, but control of the metal in other markets increases further bottlenecks in the market,” said Manav Modi, Commodities Analyst, Motilal Oswal Financial Services Ltd.