Silver's Market Cap Versus Gold | Generated by AI
The market capitalization (or total investable value) of silver is currently around $2.7 trillion, while gold’s stands at about $28.9 trillion. These figures represent the estimated value of all above-ground stocks of each metal (i.e., everything mined historically that’s still accessible in some form, multiplied by current spot prices). Here’s a breakdown of why there’s such a massive gap, despite silver being far more abundant in raw tonnage.
Quick Calculation Basics
- Gold: ~216,000 metric tonnes above ground × ~$4,150 per ounce spot price ≈ $28.9 trillion. (1 tonne = ~32,150 ounces.)
- Silver: ~1.75 million metric tonnes ever mined × ~$49 per ounce spot price ≈ $2.7 trillion.
- Note: Silver’s estimate is trickier—much of it (up to 90% historically) gets “lost” in industrial uses like electronics, solar panels, and photography, where it’s chemically altered or dispersed and not fully recoverable as bullion. So the true “investable” stock (bars/coins/ETFs) is closer to 1-3 billion ounces (~30,000-100,000 tonnes), but market cap calcs often use total mined for consistency with gold.
In short: Silver weighs ~8x more in total stock, but its price is only ~1/85th of gold’s, netting out to silver’s value being roughly 10% of gold’s.
Key Reasons for the Disparity
- Historical Supply Dynamics:
- Gold mining has been limited—humans have extracted just ~216,000 tonnes since ancient times, with annual production at ~3,000-4,000 tonnes. Much of it stays “above ground” as jewelry, bars, or central bank reserves because gold doesn’t corrode or get consumed.
- Silver mining totals ~1.75 million tonnes over history, with ~27,000 tonnes produced yearly. But silver is a byproduct of other mining (e.g., copper/lead/zinc), so supply ramps up easily when industrial demand rises. Plus, it’s easier and cheaper to mine/extract.
- Demand Differences:
- Gold (~$28T value): Mostly “stored value”—~50% investment/central banks, ~40% jewelry, ~10% tech. It’s a safe-haven asset; demand spikes in crises but doesn’t “use up” the metal. Low supply + high hoarding keeps prices elevated.
- Silver (~$2.7T value): Split ~50/50 between industrial (solar, EVs, 5G) and investment/jewelry. Industrial use consumes it permanently (e.g., in circuit boards or catalysts), reducing recyclable stock. This makes silver’s price more volatile and tied to economic cycles—booms increase supply/demand balance, busts suppress prices.
- Gold-to-Silver Price Ratio:
- Currently ~85:1 (gold $4,150/oz vs. silver $49/oz), far from the historical average of ~15:1 (pre-20th century). Why? Silver’s industrial side floods the market with supply during growth periods, while gold’s scarcity and monetary role command a premium. Recent factors like green energy demand have boosted silver, but not enough to close the gap—it’s narrowed slightly from 100:1 peaks in 2020.
| Factor | Gold | Silver | Impact on Market Cap |
|---|---|---|---|
| Total Stock | 216,000 tonnes | 1.75M tonnes | Silver has 8x more, but… |
| Annual Production | ~3,500 tonnes | ~27,000 tonnes | Silver supply grows faster, capping price upside |
| Price/Oz (Oct 2025) | $4,150 | $49 | Gold’s premium (85x higher) dominates |
| Demand Type | 90% preserved (investment/jewelry) | 50% consumed (industrial) | Gold’s stock compounds value; silver’s erodes |
| Resulting Cap | $28.9T | $2.7T | ~10:1 ratio |
If silver’s industrial demand keeps surging (e.g., solar needs could double usage by 2030), its price could climb to $60-100/oz, pushing the cap toward $4-5T. But gold’s entrenched role as “digital gold” alternative will likely keep the overall imbalance intact. For real-time prices/stocks, check sources like the World Gold Council or Silver Institute.
Market Cap of Silver
Market Cap of Gold
A Guide to Gold and Silver Market Caps