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- Silver reached a price of $116 in January 2026, marking a 257% year-over-year increase.
- The silver market capitalization has grown to $6.14 trillion, making it the second-largest asset globally.
- A five-year chronic supply deficit is cited as a primary factor driving the current price levels.
The precious metals market has experienced a significant shift, with Silver reaching a price of $116 per ounce. This represents a 257% increase year-over-year, propelling the metal’s total market capitalization to approximately $6.14 trillion.
Market Valuation and Comparisons
With its current valuation, silver has become the second-largest asset in the world by market cap. This surge has placed the metal’s total value at roughly 3.5 times that of Bitcoin. During the same period that silver experienced triple-digit growth, Bitcoin‘s value declined by 14%.
Analysts from Coin Bureau have characterized silver’s current role as a “structural metal” essential to the modern economy, rather than simply a secondary precious metal. This perspective aligns with historical comparisons to iron during the Industrial Age, noting silver’s critical utility in contemporary technology and infrastructure.
Supply Dynamics and Economic Factors
The price increase follows a prolonged period of market imbalance. Silver has faced a chronic supply deficit for five consecutive years, which has served as a primary driver for the 2026 price surge. In contrast to its 1990 price point of approximately $5.00, the current $116 valuation marks a substantial long-term shift in the asset’s economic standing.
Market commentators have suggested that silver is transitioning from being viewed as “cheap gold” to being recognized as a fundamental monetary and industrial metal. Some projections from Coin Bureau indicate the potential for the metal to reach a valuation of $200, though current market data remains focused on the $116 level.
Also Read: Commodity Surge: Gold and Silver Market Caps Now Nine Times the Size of Nvidia
Broader Market Context
The rise in silver prices occurs amidst broader regulatory and institutional developments in the digital asset space. While metals have surged, the cryptocurrency industry is navigating the delay of the CLARITY Act, a piece of market infrastructure legislation.
Analysts note that banking industry lobbying has contributed to delays in this legislation, creating a period of uncertainty for digital assets. Furthermore, the rise in popularity of various financial assets in early 2026 has been accompanied by a warning regarding an increase in sophisticated scams, including AI-powered deepfakes and fraudulent token launches.
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 your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
