Silver achieved a remarkable milestone this week, briefly overtaking Nvidia to claim the position as the world's second-largest asset by market capitalisation. The white metal's meteoric rally pushed its market value to $4.57 trillion, edging past the AI chipmaker's $4.559 trillion valuation, though prices later eased to $79 per ounce.

Market Capitalisation Rankings

The brief overtaking highlighted silver's extraordinary surge, positioning it among the world's most valuable assets. The hierarchy at the time of the milestone demonstrates the scale of silver's achievement:

Silver's ascent is particularly noteworthy as it surpassed Nvidia, widely regarded as the poster child of the artificial intelligence boom, while outperforming nearly every major asset class in 2025.

Industrial Demand Drives Silver's Rally

Silver's surge stems from its indispensable role across multiple high-growth sectors. The metal serves as a critical component in electric vehicles, solar panels, electronics, and AI data centers. Government acceleration of energy transitions and rapid expansion of data infrastructure have created robust and largely unavoidable demand patterns.

The market faces its fifth consecutive year of supply deficits, with mining output consistently lagging behind consumption levels. Above-ground inventories have fallen to near historic lows, creating additional upward pressure on prices. Lower interest rates have further enhanced the appeal of non-yielding assets like silver, with three U.S. Federal Reserve rate cuts fueling expectations for additional monetary easing in 2026.

Geopolitical and Trade Factors

A weaker dollar and various geopolitical developments have contributed to silver's haven appeal. U.S. actions in Venezuela and Nigeria have created additional flashpoints that support precious metals demand. Meanwhile, a U.S. Commerce Department probe into critical mineral imports has raised prospects of tariffs or trade restrictions on silver, injecting fresh uncertainty into already strained supply chains.

Market Structure Vulnerabilities

Unlike gold, which benefits from deep liquidity and lending pools estimated at $700 billion in London, silver lacks comparable market buffers. This structural fragility became evident during October's historic supply squeeze. While London vaults have experienced some inflows since then, shortages persist in other global markets.

In China, inventories connected to the Shanghai Futures Exchange dropped to their lowest levels since 2015. Much of the world's readily available silver now sits in New York warehouses, as traders await clarity on U.S. trade policy developments. This concentration has created what market observers describe as a global game of musical chairs, with insufficient metal available to meet widespread buyer demand.

India could soon require silver jewellery to carry official hallmarks, but only after the necessary infrastructure is in place, Bureau of Indian Standards (BIS) Director General Sanjay Garg announced on Tuesday, January 6.

Speaking at the 79th foundation day of the BIS, Garg emphasised the critical role of quality standards in national development. "Quality is the single most determining factor between a developed and a developing nation," he stated, highlighting how developed countries excel in infrastructure, governance, civic amenities, health services, and hospitality.

Understanding Hallmarking Benefits

Hallmarking serves as a certification that guarantees the purity of precious metals such as gold and silver. Each hallmark displays the metal's fineness, the BIS logo, the jeweller's identification mark, and in some cases, a unique Hallmarking Unique Identification (HUID) number. For consumers, hallmarked jewellery provides assurance that they are paying for the metal's declared purity, significantly reducing the risk of fraud or low-quality products.

Current Gold Hallmarking Progress

BIS has made substantial progress in gold hallmarking implementation across India:

Silver Hallmarking Development

Silver hallmarking has commenced on a voluntary basis and is gaining significant momentum. Since September 1, silver jewellery and articles can be hallmarked under a HUID-based system, with more than 23 lakh silver items certified so far. This system allows buyers to verify purity before making purchases.

"There is industry demand to make silver hallmarking mandatory, but we will do so only when the necessary infrastructure is ready," Garg explained. The phased approach ensures proper implementation without disrupting market operations.

Consumer Impact

For consumers, hallmarked silver jewellery is currently available, providing shoppers with a reliable method to ensure quality and avoid under-purity products. Once mandatory silver hallmarking is implemented, the system is expected to cover more districts and retailers, making it significantly easier to identify certified silver across the country.

BIS continues working to ensure access to safe and reliable products while supporting industry compliance, maintaining its commitment to consumer protection and market transparency.