Global silver prices continued their upward climb, with futures rising above $71 per ounce. This year, silver has surged nearly 150%, making it the world’s third most valuable asset, overtaking Apple Inc., CNBC reported. Gold and Nvidia now occupy the top two spots among the most valuable assets globally.
Market Value Tops Apple
Silver’s market capitalization has reached approximately $4.04 trillion, slightly exceeding Apple’s $4.02 trillion at Tuesday’s Wall Street close. This milestone highlights silver’s rapid ascent as a major asset class in global markets.
Investor Optimism Fueled by Fed Speculation
Traders are optimistic that the US Federal Reserve may continue cutting interest rates into 2026, even though Fed projections currently suggest only one additional cut. This sentiment persists despite strong economic growth in the third quarter, indicating that the US economy remains robust. CNBC TV18 noted that expectations of a new Fed Chair favoring lower rates could further encourage markets and align with President Donald Trump’s push for cheaper borrowing costs.
Industrial Demand and ETF Inflows Drive Prices
Silver plays a critical role in global industries, including electronics, solar energy, and medical equipment coatings. After a sharp short squeeze in October, strong industrial demand and heavy inflows into exchange-traded funds (ETFs) are keeping silver prices elevated.
Volatility in the iShares Silver Trust, the world’s largest silver ETF, has surged, with three-month implied volatility reaching its highest level since early 2021. However, the ratio of three-month call to put volatility has dropped to its lowest level since mid-October, signaling some caution among investors.
Signs of an Overheated Market
Technical indicators show silver is entering overbought territory. Its Relative Strength Index (RSI) stands at 80, above the 70 threshold that signals an overbought condition. Meanwhile, silver stocks held in warehouses linked to the Shanghai Futures Exchange fell to their lowest levels since 2015, further tightening supply and supporting prices.
Silver Emerges as a Major Asset
With prices climbing, industrial demand high, and market optimism driven by interest rate expectations, silver has become a key player in global financial markets. Investors are watching closely as technical signals and supply dynamics suggest that volatility may continue in the near term.
