Silver Crosses $90 Per Ounce Milestone, Total Asset Value Reaches $5.038 Trillion
Silver has achieved a historic milestone by crossing $90 per ounce for the first time, with total asset value reaching $5.038 trillion and gaining over 3% in recent trading. The surge is driven by weaker U.S. inflation data supporting expectations for further Fed rate cuts, geopolitical tensions, and a weaker dollar boosting safe-haven demand. Strong industrial demand from electric vehicles, solar panels, and AI data centers, combined with supply constraints including five consecutive years of market deficits and near-historic low inventories, continues to support the rally.
*this image is generated using AI for illustrative purposes only.
Silver has reached a historic milestone by surging past $90 per ounce for the first time ever, marking a significant achievement for the precious metal. The metal's total asset value now stands at $5.038 trillion, reflecting its growing strategic importance in the global economy and strong market performance.
Market Performance Overview
Spot silver rose over 3% to cross the $90 per ounce threshold, demonstrating exceptional strength in the precious metals market. The current market snapshot shows silver's dominant position among major assets:
| Asset: | Market Value | Price | Daily Change |
|---|---|---|---|
| Gold: | $32.169 T | $4,627 | +0.60% |
| Silver: | $5.038 T | $89.50 | +3.66% |
| NVIDIA: | $4.523 T | $185.8 | +10.47% |
| Alphabet: | $4.061 T | $336.43 | +1.11% |
| Apple: | $3.857 T | $261.05 | +0.31% |
| Microsoft: | $3.498 T | $470.67 | -1.36% |
Key Drivers Behind Silver's Rally
Several fundamental factors are driving silver's exceptional performance. Weaker U.S. inflation data has bolstered expectations for further interest rate cuts, creating a favorable environment for precious metals. Geopolitical tensions and a weaker dollar have amplified safe-haven demand, with investors seeking refuge in tangible assets.
The Federal Reserve's monetary policy continues to support precious metals, with three U.S. Fed cuts contributing to lower interest rates. Additionally, geopolitical flashpoints from Venezuela to Nigeria have further boosted silver's appeal as a store of value during uncertain times.
Industrial Demand and Supply Constraints
Silver's industrial indispensability adds significant fuel to the current rally. The metal plays a critical role in several high-growth sectors:
- Electric vehicles manufacturing
- Solar panel production
- Electronics industry
- AI data centers infrastructure
Governments accelerating energy transitions and expanding data infrastructure have made silver demand unavoidable. This industrial requirement creates a strong foundation for sustained price appreciation.
Supply Market Challenges
The supply side presents significant constraints that support higher prices. The silver market faces its fifth consecutive year of deficits, with mining output lagging behind consumption levels. Inventories hover near historic lows, creating additional pressure on available supply.
Unlike gold, which enjoys deep liquidity and lending pools estimated at $700 billion in London, silver lacks comparable buffers. This fragility was exposed during October's historic supply squeeze, and despite inflows into London vaults, shortages persist globally.
Trade and Policy Implications
A U.S. Commerce Department probe into critical mineral imports could lead to tariffs or trade curbs, potentially straining supply chains further. This regulatory uncertainty adds another layer of complexity to the silver market dynamics and could contribute to continued price volatility.
The combination of strong industrial demand, supply constraints, favorable monetary policy, and geopolitical uncertainties has created a perfect storm for silver's historic price breakthrough, establishing the metal as a significant player in the global asset landscape.
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