While global equity markets paused for Christmas celebrations, one asset class was busy scripting a historic rally. Silver, the precious metal, has delivered one of the most extraordinary performances in decades, with its year-to-date surge nearing 150% and its market value eclipsing that of tech behemoths like Apple Inc.
A Meteoric Rise to the Top
As of December 24, silver futures settled at $71.8775 per ounce, extending a record-breaking run that saw prices cross the key psychological milestone of $72 an ounce earlier in the week. This relentless rally has catapulted silver into an elite league of global assets. With a market capitalisation of $4.059 trillion, silver has now become the third-most valuable asset in the world, marginally ahead of Apple's $4.05 trillion as of Wall Street's Wednesday closing.
The white metal has also moved past Alphabet (market cap of $3.8 trillion) and Amazon ($2.48 trillion). The top two spots continue to be held by Gold, with a market cap of approximately $15 trillion, and NVIDIA Corporation, valued at $4.58 trillion as of December 24.
Unpacking the Drivers of Silver's Surge
Silver's glittering ascent is fueled by a potent mix of macroeconomic and sector-specific factors. Its safe-haven appeal has been burnished by escalating geopolitical tensions, including recent frictions in Venezuela involving a US blockade of oil tankers. Simultaneously, market expectations of a dovish turn by the US Federal Reserve are providing tailwinds. Traders anticipate continued rate easing into 2026, a scenario that traditionally supports non-yielding assets like precious metals.
This optimism persists despite a strong US Q3 GDP print, with investors speculating that the next Fed Chair could adopt a more accommodative stance aligned with potential policy preferences of the US administration. Beyond macro factors, robust industrial demand is a critical pillar. Silver is indispensable in modern sunrise industries:
- Electric Vehicles (EVs)
- Solar panel manufacturing
- Electronics and mobile devices
- Medical device coatings
"The impressive growth of these industries has pushed up the demand for silver. In the absence of a corresponding increase in supply of this scarce metal, the price has shot up," explained V K Vijayakumar, Chief Investment Strategist at Geojit Investments Limited. He added that while some profit booking is possible, silver prices are likely to remain resilient.
The rally is further supported by elevated central-bank purchases and steady inflows into silver-backed exchange-traded funds (ETFs).
Performance Metrics and Technical Outlook
The scale and speed of silver's move are staggering when compared to its peer, gold. While gold has delivered a strong 72% gain over the past year, silver's performance has been phenomenal:
- 138% surge in the last one year
- 99% jump over six months
- 59% rise in three months
- 39% increase in just one month
This puts silver on track for its best annual performance since 1979. On the technical front, analysts advise caution. Renisha Chainani, Head of Research at Augmont, noted that silver has reached a significant resistance level. "Silver has touched the second target resistance of $72 (around ₹223,000). I think it’s time to book profits, as the rally seems overdone. We can see a price retracement up to $68 (around ₹210,000). But, if silver continues its bullish momentum, the next target is $75 (₹235,000)," Chainani stated.
As the year draws to a close, silver's remarkable ascent has given global investors an unexpected and lucrative reason to celebrate, turning the festive season into a truly golden—and decisively silver—moment for markets.
