Silver prices surged 4-5% in a single day to reach another record high, pushing the precious metal's market capitalization past that of Apple, the second-largest U.S. company by market value. In Korea, surging demand for physical silver is expected to cause shortages of silver bars through early next year.
On the Chicago Mercantile Exchange on the 26th, silver futures for March delivery traded at $75.176 per ounce, up 4.87% ($3.49) from the previous day. At one point, silver prices rose more than 5% from the previous session to reach $75.485 per ounce, a record high.
Following the sharp price rally after the Christmas holiday, silver's market capitalization surpassed that of Apple. According to CompaniesMarketCap, silver's market cap stood at $4.227 trillion as of 4 p.m., exceeding Apple's $4.063 trillion by approximately $160 billion. Silver's market cap is calculated by multiplying the current price by estimated mined reserves of 1.751 million tons.
With the day's price surge, silver has risen approximately 160% this year, outpacing other alternative assets including gold and bitcoin in terms of price gains. Silver, which is used in industrial applications such as electronics, solar panels, and electric vehicle batteries, has soared this year on safe-haven demand driven by economic uncertainty and geopolitical risks. More recently, preference for silver has intensified as the United States has increased pressure on Venezuelan President Nicolás Maduro's government.
"This year's relentless silver rally will be remembered as one of the most dramatic revaluations in modern precious metals history," said Ole Hansen, head of commodity strategy at Saxo Bank. "After spending the past decade oscillating between its dual identities as a monetary metal and industrial input, silver has finally established both identities simultaneously this year, overcoming the crisis at a time when supply constraints have reached a level that can no longer be ignored."
In Korea, demand centered on physical silver has surged, making it difficult for individuals to secure silver bars for the time being. Korea Precious Metal & Gem Exchange extended its estimated delivery period for silver bars from four weeks to six weeks starting with orders placed the previous day. The change reflects a rush of silver bar demand amid continued price increases. Korea Minting, Security Printing & ID Card Operating Corporation and Samsung Gold Exchange have temporarily suspended silver bar sales. Korea Gold Exchange, another major supplier, has posted a notice that orders now take at least two months from placement to delivery due to surging silver bar demand.
