Silver briefly secured the second-highest market capitalization among global assets on Monday, overtaking semiconductor manufacturer Nvidia in a historic realignment of worldwide wealth. Only gold maintains a superior position in the international asset hierarchy.
This was the first occasion in modern financial history where a manufacturing commodity surpassed a premier technology corporation in worldwide asset rankings.
Global markets confronted a fifth consecutive year of supply shortfalls, intensified by China's strengthening export restrictions scheduled to commence January 1, 2026. Simultaneously, successive interest rate reductions by the US Federal Reserve enhanced the appeal of non-yielding holdings such as precious commodities, driving additional capital flows into the sector.
Silver retreated after securing an all-time high exceeding $80 per ounce on Monday, while gold prices softened from near-record levels as investors locked in gains and geopolitical concerns appeared to ease, Reuters reported. The shift in sentiment curbed the aggressive safe-haven buying that has characterized recent sessions.
Following the extraordinary price appreciation, asset valuations were briefly reorganized across major categories. Gold commands the apex at $31.5 trillion, while silver now registers approximately $4.7 trillion, narrowly exceeding Nvidia's roughly $4.6 trillion valuation. Apple follows at approximately $4.0 trillion, with Alphabet controlling around $3.8 trillion, Microsoft holding approximately $3.6 trillion, and Bitcoin totaling roughly $1.8 trillion.
The metal's advancement to the runner-up slot resulted from a remarkable 170–180% appreciation throughout the calendar year. The commodity functions as a dual-purpose asset, proving indispensable for high-growth manufacturing sectors including photovoltaic panel production, battery-electric vehicle systems, and artificial intelligence data center infrastructure.
Spot gold dropped 1.7% to $4,455.35 per ounce by 1321 GMT, slipping from Friday's record of $4,549.71, while US gold futures for February delivery fell by an identical margin to $4,474.80, according to Reuters.
The pullback was even sharper for other precious metals. Spot silver lost 5.1% to trade at $75.15 per ounce, falling from an intraday peak of $83.62. Reuters noted that this correction comes amidst a broader sell-off in the sector.
Platinum prices slid 6.9% to $2,281.15 per ounce after reaching a record $2,478.50, while palladium experienced a steep decline of 11.9% to $1,694.75 per ounce, the wire service reported.
"This morning's (gold) price decline, which follows record highs, is attributable mainly to traders taking profits ahead of the year-end," ActivTrades analyst Ricardo Evangelista was quoted by the outlet.
The analyst further observed that "Tentative optimism from the US administration regarding progress in the Ukraine peace talks also represents a mild headwind."
This sentiment followed comments from US President Donald Trump, who stated on Sunday that he and Ukrainian President Volodymyr Zelenskyy were "getting a lot closer, maybe very close" to a deal to end the conflict, according to Reuters.
Despite the day's losses, bullion has climbed roughly 72% this year, mainly due to factors such as relaxed US monetary policy, dollar weakness, global friction, and robust central bank purchasing.
Silver has significantly outperformed gold, registering a 181% increase year-to-date. Reuters identified key drivers as its classification as a US critical mineral, persistent supply deficits, and rising appetite from both industrial users and investors.
Attention now turns to the release of the Federal Reserve's December meeting minutes on Tuesday, which investors hope will provide clarity on the interest rate trajectory, the outlet noted.
Traders have currently priced in two rate reductions for the coming year. Reuters explained that assets without yield typically prosper during periods of low interest rates.
"Gold prices are trading at an elevated premium, and downside risks could emerge if a hawkish pivot by the Federal Reserve were to surprise and/or large ETF outflows were to affect the market," UBS analysts said in a note.
