Spot silver experienced a sharp rally on Tuesday, surging past the key $110 per ounce level to hit an all-time high of $112, posting a single-day gain of over 8%. The move attracted widespread attention from global markets.
Industrial Demand and Green Transition Fuel Rally
Analysts attribute the surge to multiple catalysts. First, industrial demand continues to expand rapidly. Silver is widely used in solar photovoltaics, electronics, electric vehicles, 5G infrastructure, and AI applications, with the global green energy transition providing sustained support. Second, precious metals remain in a broad bull market, with gold already above $5,000/oz, prompting significant catch-up buying in relatively undervalued silver and drawing large capital inflows.
Supply Deficit and Macro Factors Align
Supply-demand imbalance also played a key role. Global silver mine output is rising slowly, unable to meet surging demand, boosting spot premiums. Additionally, geopolitical uncertainties, a weaker dollar, and continued central bank gold purchases have added extra upward momentum to silver.
According to data from 8marketcap, silver's total market capitalization has now exceeded $6.2 trillion. If the rally persists, its market cap could soon surpass the combined value of Nvidia and Alphabet's Google.