Gold and silver, long viewed as classic stores of value, briefly reclaimed their positions as the world’s largest assets by market capitalization as investors entered the new year facing heightened economic and geopolitical uncertainty. Bitcoin, often described as “digital gold,” remains outside the top tier, currently ranking eighth by market cap.
Precious metals regain dominance
According to data from CompaniesMarketCap, gold now sits firmly at the top with an estimated market capitalization of $31.1 trillion. The renewed strength reflects sustained demand for safe-haven assets as investors look to protect capital during periods of global instability.
Silver also made a strong move, temporarily overtaking Nvidia to claim second place. The metal has been trading neck-and-neck with the chipmaker since December, frequently swapping positions as both assets attract heavy investor interest.
Nvidia’s AI-driven surge
While silver briefly moved ahead, Nvidia quickly reclaimed its position. The company continues to benefit from intense demand for high-performance computing hardware, fueled by the rapid expansion of artificial intelligence and data center infrastructure. This AI-driven growth has turned Nvidia into one of the most valuable companies in the world, rivaling traditional asset classes.
Why investors are piling into gold and silver
Over the past year, capital has steadily flowed into precious metals as global conflicts, trade tensions, and macroeconomic uncertainty pushed investors toward historically reliable stores of value. Gold and silver have long played this role during turbulent periods, and current market conditions are reinforcing that narrative.
Another major factor is monetary policy. Investors are increasingly pricing in potentially significant interest rate cuts from the US Federal Reserve under its new leadership. Expectations of lower rates tend to weaken fiat currencies and boost demand for commodities like gold and silver.
All-time highs signal strong momentum
This rising demand recently pushed gold and silver to new all-time highs, with prices reaching around $4,500 for gold and $80 for silver. While Bitcoin and the broader crypto market have yet to see the same level of momentum, some analysts believe the shift could be coming next.
Crypto may follow as rates fall
In a recent interview, Owen Lau, managing director at Clear Street, suggested that future Federal Reserve decisions could become a major catalyst for digital assets. He argued that monetary policy moves in 2026 may play a key role in shaping the next phase of the crypto market.
According to Lau, lower interest rates would likely reignite appetite among both retail and institutional investors for risk assets, including Bitcoin, often referred to as digital gold. If that scenario unfolds, today’s rally in precious metals could be a leading indicator of broader shifts across global asset markets.
