Silver price (XAG/USD) refreshed its all-time high (ATH) to hit $84.00 early Monday in Asia, up for the sixth consecutive day, before retreating to $75.00 by press time.
A stellar rally in the silver price fueled the XAG/USD market capitalization to $4.7 trillion when the prices hit an ATH, which overtook the world’s biggest company by market cap, Nvidia (NVDA), to become the second-largest asset globally, just after gold’s market cap of around $31.8.
The market is also buzzing with discussions about a potential increase in the market cap of gold and silver combined to $16.00 trillion by 2025.
Notably, market capitalization, or market cap, is the total value of an asset, derived by multiplying the total available quantity for trading/investment by the market price. Market cap highlights the underlying asset’s size, stability, and market value, giving an overview of the asset.
It’s worth observing that a spike in silver’s market cap was only momentary, as it retreated to its third position as soon as the XAG/USD price eased to $75.00.
Top Global Assets (per Market Cap)
Alongside the market cap, returns on investing in silver have also garnered the market’s attention, as the bullion eyes the highest returns since 1979, when the XAG/USD rallied nearly 435%, up almost 160% in 2025.
If we look at the inflation-adjusted value of the precious metal, the current price is around $56.50, versus the record high of $146.98 hit in January 1980. In the inflation-adjusted method, the price is adjusted for the latest inflation figures, making more sense. That said, the most recent U.S. inflation figures, published for November 2025, per the Consumer Price Index (CPI), were 2.7% Year-over-Year (YoY).
Major Catalysts Fueling the Silver Price
If we look at the major catalysts that fuelled the Silver price, macroeconomic factors, growing demand from modern technology, and clean energy gain major attention.
Among the key risk news, recently increased optimism surrounding the Ukraine-Russia peace deal seemed to have gained major attention in fueling the XAG/USD. During the weekend, U.S. President Donald Trump met his Ukrainian counterpart, Volodymyr Zelenskyy, and said that they (Trump, Zelenskyy, and Russian President Vladimir Putin) are in the “final stages” of talking. Trump also confirmed his belief that both Putin and Zelenskyy want a deal. Following that, European Commission President Ursula von der Leyen also crossed wires while updating on her one-hour call with Trump, Zelenskyy, and several European leaders. The EC Leader also described the latest peace negotiations as constructive, and marked “good progress.”
Apart from that, the U.S. dollar’s weakness due to the Federal Reserve’s (Fed) rate cuts and the market’s rush towards a safe-haven asset, considering macro uncertainties surrounding the trade and political actions of U.S. President Donald Trump, also fuelled the Silver price. Notably, the U.S. Dollar Index (DXY) drops almost 10% in 2025, the biggest yearly slump since 2017.
That said, the latest export restrictions from China, requiring the small and medium firms to take licenses for exporting silver, seemed to have also lured the silver bulls. Notably, China controls around 60%-70% of the global silver supply.
On the same line, a persistent five-year deficit in the silver mine production per the Silver Institute, also underpins a strong rally in the silver price. As per the latest buzz, silver mines produced around 820 million ounces in 2025, versus the total global demand of 1.2 billion ounces.
What Next?
The silver price remains on the buyer’s list as it briefly toppled Nvidia to become the world’s second-largest asset, despite recently easing from an all-time high. Industrial demand, the Fed’s dovish outlook, supply deficit, and China’s silver export restrictions are the key reasons that fueled the price rally in 2025.
However, the fact that the bright metal shot heavily in 2025, and the Fed also signaled pausing the rate cuts, which, if confirmed, can trigger the much-awaited pullback in the XAG/USD. Still, macroeconomic uncertainty and the bullion’s traditional haven status, along with gold, can keep the bright metal the bull’s favorite.
