Silver overtakes Apple as world's third-most valuable asset
What's the story
Silver has now outshone Apple Inc. to become the third most valuable asset in the world, after gold and NVIDIA. The surge in silver prices has been nothing short of spectacular, with futures crossing the $71 an ounce mark. This represents a year-to-date increase of nearly 150%. As of Tuesday's closing on Wall Street, silver's market capitalization stood at $4.04 trillion, edging past Apple's $4.02 trillion valuation.
Price drivers
Market expectations and industrial demand fuel silver's rise
Traders expect the US Federal Reserve to keep easing rates into 2026, despite the Fed Dot Plot suggesting room for just one rate cut. This expectation is driving market optimism, even with a strong third-quarter GDP print showing the US economy's resilience. Meanwhile, industrial demand and strong ETF inflows are keeping silver prices high. The metal is widely used in electronics, solar panels, and medical device coatings.
Market trends
Silver's market activity and investor behavior
The three-month implied volatility of iShares Silver Trust, the world's largest silver ETF, hit a peak not seen since early 2021. However, one measure of bullishness—the ratio of three-month call to put volatility—fell to its lowest level since mid-October. Despite these fluctuations, investors remain undeterred by rising prices. "Instead of sellers stepping in aggressively, both gold and silver continue to attract buying into strength," said Ahmad Assiri, a strategist at Pepperstone Group.