Gold, Silver, and the Tech Titans: Which Asset topped the Leaderboard?

Market Update - Thursday, 1 Jan

As the new year begins, there is a strong sense of optimism for 2026. There are many reasons to believe this will be a fantastic year for the markets. The market has consolidated for approximately 15 to 16 months now.

The market today was very flat and listless. Most markets worldwide observe a holiday on January 1st due to very low participation, and the Indian markets were no different, seeing very low volumes.

ITC experienced a significant breakdown from a head and shoulders pattern, with the stock falling nearly 9% to 10% by the close. This downward move persisted throughout the day. This volatility follows news regarding excise taxation, which suggests that excise will be applied on top of a new 40% GST. While there is still some confusion surrounding the details, the market price is usually the most reliable indicator of how investors are interpreting the news.

• The Nifty had a flat day, moving just 0.06%, but it remains very close to an all-time high.

• The Nifty Next 50 was up for the third consecutive day, moving closer to the highs seen in October.

• Mid-caps also rose 0.4%, with all trends pointing upward.

• Small caps lagged slightly today at -0.1%, where the mid-term trend remains negative despite positive long and short-term trends.

• Banking stocks performed well, closing near a new all-time high with a gain of 0.22% for the day.

• In commodities, gold was somewhat sluggish with a negative short-term trend, though it remains at a very high level compared to one year ago.

• Silver remains strong in terms of overall trends despite being down 0.22% for the day.

Other Market Triggers

• Most stocks ended in the green, with the only major losses seen in ITC, Tata Consumer, Bajaj Finance, ONGC, Asian Paints, Bharat Electronics, and ICICI Bank.

• The Nifty Next 50 heat map showed losses in United Spirits, Dmart, and PidiLite, while seeing gains in PFC, REC, and public sector banks.

• Adani Power moved up 4% today, while Vodafone Idea saw a recovery of about 8%. This follows news that the Supreme Court and the government have frozen the dues the company needs to pay until 2041, providing a long runway for survival.

US Market Updates

• US markets were down across all indices in the previous session, with companies like Palantir and IBM seeing drops between 1.3% and 1.9%.

• This selling pressure on December 31st might be linked to the end of the tax year, and the true direction will be clearer when their markets reopen on the 2nd.

What to watch next ?

• Interestingly, an analysis by JP Morgan suggests that when US markets have a forward price-to-earnings ratio of 23 or higher, the returns for the following 10 years are historically poor.

• With the US market currently above that level, the 10-year outlook appears bleak.

• Ray Dalio shares a similar sentiment regarding India's potential, suggesting that if US returns stall, there will be a significant flow of capital toward the Indian market.

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The Global Asset Leaderboard: Gold, Silver, and the Tech Titans

Understanding Market Capitalization (Market Cap) is the most effective way to gauge the true scale of an asset class and see exactly where the world’s "Big Money" is flowing.

Today, we break down the rankings of the world’s top assets—ranging from precious metals to tech giants and cryptocurrencies.

1. The Undisputed King: Gold’s $31 Trillion Reign

Gold remains the ultimate heavyweight. With a current market cap of approximately $31 Trillion, it sits far above any other asset on the planet.

• How the math works: If you take the total amount of gold ever mined and multiply it by the current rate (roughly $4,450 per unit in this context), you arrive at this staggering valuation.

• The Growth Spurt: Just 18 months ago, Gold’s market cap hovered between $15 Trillion and $18 Trillion. Its jump to $31 Trillion signals a massive global shift toward "hard" monetary assets.

2. The Rise of Nvidia and the Silver Surge

While Gold is the king, the battle for the second spot is intensifying. Nvidia has seen a meteoric rise, jumping from a $250 Billion valuation to a massive $4.4 Trillion in record time. However, it has a "shiny" rival breathing down its neck.

• Silver’s Momentum: Currently valued around $3.75 Trillion, Silver has recently seen a 10% price surge.

• The Overtake: In the last few days, Silver has climbed the ranks, moving past Amazon, Alphabet (Google), and Microsoft, and is now closing the gap with Nvidia and Apple.

3. Bitcoin vs. The Monetary Metals

There has been immense hype surrounding Bitcoin over the last decade. Yet, despite being pushed aggressively as "Digital Gold," its market cap sits at $1.8 Trillion.

While impressive, Bitcoin is still significantly smaller than tech giants like Apple or Alphabet, and it is dwarfed by the $31 Trillion market cap of physical Gold. This suggests that while crypto is growing, the global financial system still views Gold and Silver as the primary "monetary metals," especially with Central Banks actively accumulating Gold.

4. The "US Dominance" Factor

If you remove Gold, Silver, and Bitcoin from the list, the remaining top assets in the world are almost exclusively US Public Companies. This highlights the overwhelming dominance of the US stock market in absorbing global investment capital. However, the recent movement of Silver and Gold suggests that investors are once again seeking refuge in tangible, historical stores of value.

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