Silver Prices Surge as Market Capitalisation Overtakes Microsoft

Silver has recently achieved a significant milestone, with its market capitalisation surpassing that of Microsoft, now making it the fifth-largest asset globally. The precious metal's futures reached an impressive peak near $65, while spot prices have crossed the $60 mark for the first time in a volatile trading environment. This surge marks the strongest rally for silver since 1979, driven primarily by supply shortages in major markets such as London.

As of now, silver has gained approximately 140% to 150% in value this year alone, outpacing gold, which has risen about 50% to 60% during the same timeframe. The latest daily increase of 5.69% has propelled silver's market capitalisation to $3.631 trillion, placing it just ahead of Microsoft's $3.571 trillion.

Analysts attribute this surge to several factors, including low mine supply, decreasing refined output, shrinking inventories, and record-high borrowing rates. Additionally, heavy inflows into exchange-traded funds (ETFs) have indicated a strong demand for hard assets as investors seek protection amid economic uncertainties and geopolitical tensions.

"The extreme tightness in the physical market has driven this rally," said a market analyst.

The current landscape shows that the industrial demand for silver is particularly robust, especially in sectors like solar energy and electric vehicles (EVs). Supply deficits are exacerbated by stagnant mining output and low inventories, with solar energy alone projected to add 150 million ounces annually by 2030.

Investment inflows into silver exchange-traded products have also risen by 6.3% in 2024, further supporting prices amid ongoing geopolitical tensions. However, market volatility remains a concern, as shifts in macroeconomic factors could induce corrections if interest rates increase or economic growth slows.

Historically, silver has experienced significant price spikes, but the current cycle is distinct. In 1980, prices briefly exceeded $50 due to market manipulation and inflation fears. In 2011, silver prices peaked at $49 amid post-crisis monetary easing. Now, in December 2025, prices are consistently in the low to mid-$60s, influenced by supply squeezes and increased ETF demand.

The latest estimates show silver's market valuation has surpassed some of the largest tech companies, with gold still leading the pack at $29.991 trillion. The current rankings of major assets are as follows:

1. Gold: $29.991 trillion
2. Nvidia: $4.356 trillion
3. Apple: $4.119 trillion
4. Alphabet: $3.814 trillion
5. Silver: $3.631 trillion
6. Microsoft: $3.571 trillion
7. Amazon: $1.912 trillion
8. Broadcom: $1.803 trillion
9. Bitcoin: close behind at $1.803 trillion

Looking ahead, analysts maintain a bullish outlook for silver into 2026, forecasting average prices between $56 and $65 per ounce, with potential peaks reaching $72 to $88 under favourable conditions. However, some institutions predict more conservative estimates around $42 to $43 due to tight supply dynamics. Long-term projections even suggest silver could exceed $100 if deficits continue to widen.

As demand for silver remains robust, driven by its use in solar panels, electric vehicles, and advanced electronics, the market is set to face its fifth consecutive year of deficits. The tightening supply and ongoing demand raise concerns about future availability, potentially leading to further price increases as we head into 2026. Despite the positive outlook, analysts caution about potential pullbacks, advising traders to remain vigilant about industrial trends and macroeconomic shifts that could impact the market dynamics.