|
Getting your Trinity Audio player ready...
|
- Gold and silver have reached a combined market capitalization of $41 trillion, nearly ten times the value of Nvidia.
- Silver experienced a historic intraday reversal, losing $900 billion in market value in 90 minutes after hitting record highs.
- The U.S. dollar’s share of global currency reserves has fallen to a 20-year low of 40% as central banks increase gold holdings.
In a significant shift in the global financial landscape, precious metals have achieved historic valuation milestones while the cryptocurrency market faces a severe downturn. According to data reported by the financial commentary outlet The Kobeissi Letter, the combined market capitalization of Gold and Silver has reached approximately $41 trillion, an amount equivalent to nine times the total value of semiconductor giant Nvidia.
Precious Metals Reach Historic Highs
Gold has officially hit a record market capitalization of $35 trillion, while silver has climbed to a record $6 trillion. The surge in silver prices has been particularly volatile; the metal’s price increased by 54% within a single month, placing it 280% higher than its January 2025 valuation.
However, this growth was accompanied by extreme intraday volatility. On January 26, silver experienced two “4-sigma” moves—statistical rarities indicating extreme price swings. After jumping more than 14% to a record high of approximately $118 per ounce, the price plummeted 15% in a matter of hours. This retracement resulted in $900 billion of silver’s market capitalization being wiped out in just 90 minutes.
Also Read: Tether Buys 27 Tons of Gold as Tokenized Gold Market Explodes Past $5B
Divergence from Digital Assets
While precious metals reached new peaks, the cryptocurrency market experienced a sharp contraction. Total crypto market capitalization reportedly dropped by $1.7 trillion during the same 90-minute window that saw silver’s rapid reversal. Bitcoin, the leading digital asset, has fallen 11% over the last 13 months, while silver has gained 270% in the same period.
As a result of this divergence, silver’s total market value is now 3.5 times larger than that of Bitcoin. Analysts attribute this shift to investors seeking traditional safe-haven assets amid fiscal uncertainty, including the potential for a U.S. government shutdown.
The US Dollar and Global Reserves
The rally in hard assets coincides with a declining global share for the U.S. dollar. The dollar now represents roughly 40% of global currency reserves, marking its lowest level in at least 20 years. Over the last decade, the greenback has lost 18 percentage points of its reserve share. Conversely, gold’s share of global reserves has risen to 28%, a three-decade high.y
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
