Silver Reaches Historic $3.59 Trillion Market Capital, Displacing Microsoft in Global Rankings

The precious metal has achieved a remarkable milestone in the assets hierarchy this week. Silver’s valuation climbed past the $3.59 trillion threshold after breaking through the $63 per ounce barrier for the first time in history, edging out Microsoft’s current market capital standing. This unprecedented achievement reflects a broader shift in investor sentiment toward tangible inflation hedges.

The Rally Behind the Numbers

The surge in silver’s market capital can be traced back to two primary catalysts. First, investors have demonstrated increased appetite for physical commodities as protection against inflationary pressures. Second, the recent 25 basis point rate reduction by the US Federal Reserve—though anticipated by markets—unleashed a wave of buying momentum across commodity futures and spot markets. Since the beginning of 2024, silver has posted gains exceeding 150%, climbing from approximately $25 per ounce to its current elevated levels.

Market Capital Positioning in the Global Asset Landscape

Silver’s ascent places it firmly within the elite tier of global assets by market capital. The metal now ranks ahead of both Microsoft and Amazon, which command valuations of $3.6 trillion and $2.5 trillion respectively. However, silver has not yet caught up with Alphabet’s $3.8 trillion market capital, suggesting further upside potential should the current momentum persist.

Historical Context and Future Implications

This resurgence to record territory represents a significant psychological breakthrough for silver investors. The last time the metal achieved comparable heights was 2011, when it peaked at $50 per ounce before entering a prolonged decline that saw prices compress to $15 in subsequent years. The current rally, underpinned by genuine fundamental demand for inflation protection and industrial applications, may have different characteristics than previous boom-bust cycles.