Silver and gold are surging — why are people worried about de-dollarization?
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Key Takeaways
Gold and silver were briefly both at the top of global asset rankings by market capitalization.
Rising gold and silver prices highlight growing unease about reliance on U.S.-controlled financial infrastructure.
While silver’s rally has renewed debate over crypto as a safe haven, analysts say Bitcoin’s response is more nuanced.
Fears that the world may be edging closer to de-dollarization are resurfacing as investors continue to pour money into gold and silver, briefly pushing both precious metals to the top of global asset rankings by market capitalization at the start of the year.
The renewed focus on hard assets comes amid geopolitical tensions, trade disputes and expectations of easier U.S. monetary policy, factors that have weighed on confidence in the dollar and boosted demand for traditional stores of value.
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On Wednesday, silver briefly reclaimed second place globally by market capitalization, overtaking U.S. chipmaker Nvidia before slipping back again, momentarily placing gold and silver in the top two spots worldwide.
Gold remains the world’s largest asset by market value, with a market capitalization of approximately $31.1 trillion, according to data from the analytics platform CompaniesMarketCap.
Silver briefly overtook Nvidia before dropping back down. | Source: companiesmarketcap
Silver has been battling Nvidia for second place since December, with the two assets frequently switching positions.
Both metals have reached record highs in recent weeks, with gold trading around $4,500 an ounce and silver near $80.
What De-Dollarization Means — And Why Metals Matter
De-dollarization is often described as a move away from the U.S. dollar in global trade and reserves, but market participants say the reality is more nuanced.
In practice, it often refers to efforts by countries and institutions to reduce their reliance on U.S.-controlled financial infrastructure, rather than abandoning the dollar entirely as a unit of account.
This includes banking networks, dollar-clearing systems and other key components of the global payments system.
Such efforts have accelerated in recent years as sanctions and geopolitical frictions have increased the perceived risks of using traditional payment rails.
Central banks, particularly in emerging markets, have responded by increasing gold reserves, viewing the metal as a neutral asset outside the control of any single government.
The surge in gold and silver prices has therefore been interpreted by some investors as a signal of growing unease about the long-term dominance of the dollar.
Silver Surges — What About Bitcoin?
Silver’s sharp rally has also reignited debate over whether cryptocurrencies will follow the same path as traditional safe havens during periods of geopolitical stress.
On Tuesday, silver climbed above $79 per ounce, putting it less than 6% from new all-time highs, after a U.S.-led operation resulted in the capture of Venezuelan President Nicolás Maduro.
Historically, Bitcoin has often lagged behind gold and silver in its response to geopolitical shocks.
However, the CCN Education Team cautioned that silver’s rally does not automatically mean Bitcoin will follow.
In a recent report, the team highlighted several key variables that will shape Bitcoin’s response, including central bank signalling, dollar liquidity, derivatives positioning, and whether geopolitical risks escalate further or begin to stabilise.
If the current crisis leads to easier monetary conditions or a broader risk-on shift, CCN argues Bitcoin is more likely to respond positively.
Conversely, if uncertainty drives risk aversion and tighter financial conditions, Bitcoin could lag even as silver continues to climb.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
