5 Key Facts of Silver vs Gold Supply Gap and its Impact on Crypto & Commodity Assets

Updated

January 26, 2026

Gambar 5 Key Facts of Silver vs Gold Supply Gap and its Impact on Crypto & Commodity Assets

Jakarta, Pintu News – A new report shows that the global supply of silver bullion is much smaller than gold, raising fundamental questions about the relative valuation of this commodity in the context of the broader asset market, including cryptocurrencies and other safe havens such as Bitcoin and gold. This data is relevant for investors evaluating the character differences between digital assets and traditional commodities in diversification strategies.

1. Significant Supply Gap

Silver bullion worldwide is estimated to be around 2.5 billion ounces held in global vaults. The total value of this is about US$257 billion (about IDR4.31 quadrillion at an exchange rate of IDR16,763 per 1 USD). Gold bullion, on the other hand, stands at around 7 billion ounces with a value of nearly US$34.9 trillion (about IDR 584.9 quadrillion).

This indicates a huge supply gap between the two precious metals. This disparity reflects gold’s role as the dominant store of value asset compared to silver, although silver also has high industrial demand.

Also Read: Silver Price Prediction 2026-2030, How will it fare in the next 5 years?

2. Implications of Commodity Valuation

It’s estimated there is 2.5 billion ounces of above ground silver bullion in vaults around the world, worth 2.5B x $103 = $257B

All the available silver bullion in the world is worth $257B.

It’s estimate there’s around 7 billion ounces of gold bullion in vaults, worth $7B x…
— David Bateman (@davidbateman) January 25, 2026

Such supply gaps lead to the question of possible mispricing or intrinsic valuation differences between silver and gold. In the context of commodities, supply availability is usually the main factor determining long-term prices. When supply is relatively limited while industrial demand increases, price pressures can change significantly. Investors often compare this fundamental metric to other assets, including cryptocurrencies, to determine long-term portfolio allocations.

3. Silver Has High Industrial Demand

Silver is known to have wide demand in industrial sectors, including electronics, renewable energy and photography. As a result, cyclical changes in demand in the industrial sector can have a direct impact on silver prices compared to gold, which is more influenced by investment demand. This difference in dynamics therefore makes it clear why silver’s smaller supply does not immediately translate to a higher valuation than gold over the long term.

4. Relevance for Diversified Asset Investors

The difference in supply and valuation between silver and gold teaches the lesson that commodities have different fundamental characteristics than digital assets like Bitcoin (BTC) or Ethereum .

Cryptocurrencies do not have a physical supply stored in vaults, so direct comparisons rely more on consensus mechanisms, network utility, and digital market demand. But an understanding of how traditional supply affects prices can help crypto investors understand the relative value of assets outside of the crypto market.

5. Market Risk and Macro Sentiment

This supply gap is also relevant in the context of macro market sentiment. When economic uncertainty increases, investors usually seek safe haven assets such as gold and sometimes Bitcoin.

Silver, due to its role as an industrial commodity, can experience different price volatility than gold or cryptocurrencies during cyclical changes in the global economy. As such, understanding the supply basis of silver versus gold can help in asset allocation strategies amid global market volatility.

Also Read: 3 Cryptocurrencies that are Ready to Rise Again in 2026

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.