On October 17th, Beijing time, the gold market welcomed a milestone moment. According to CompaniesMarketCap data, as the gold price surged past the $4,300 per ounce mark, the total market capitalization of gold surpassed $30 trillion, becoming the first global asset to reach this historic level, leading by a wide margin in the global asset market capitalization rankings.
As of October 17, the COMEX gold futures closed up 3.4% at $4344.3 per ounce, and the COMEX silver futures closed up 3.99% at $53.43 per ounce, continuing to set new closing highs.
01 Epic Milestone of Gold
After the gold price surged overnight to break the $4300 barrier, gold has undoubtedly set a new record once again.
According to the latest data from CompaniesMarketCap, the total market capitalization of gold has surpassed $30 trillion, a figure calculated using the total amount of gold mined by the World Gold Council and the current gold price.
The latest data released earlier this year by the World Gold Council shows that the total amount of gold mined globally is approximately 216,265 tons—1 ton of gold is roughly equivalent to 32,150.7 ounces.
This figure not only reflects the long-term appeal of gold as a safe-haven asset but also highlights the renewed preference of global investors for "hard currency" assets in the context of current inflation and geopolitical risks.
02 Leading Global Assets in Faults
From the perspective of market capitalization, if we compare the total market capitalization of gold with that of global giants, gold can easily "take on ten".
The market capitalization of gold is higher than the combined total of the top ten stocks—NVIDIA, Microsoft, Apple, Alphabet, Amazon, Meta, Broadcom, Saudi Aramco, TSMC, and Tesla (25.3 trillion dollars).
Specifically, even if we add up the market capitalizations of Nvidia ($4.43 trillion), Microsoft ($3.8 trillion), Apple ($3.68 trillion), Google ($3.04 trillion), Silver ($3 trillion), Amazon ($2.29 trillion), Bitcoin ($2.17 trillion), Meta ($1.8 trillion), Broadcom ($1.67 trillion), and Saudi Aramco ($1.63 trillion), it is still less than the total market capitalization of gold.
This comparison clearly demonstrates the unique position and astonishing scale of gold in the global assets.
03 The Driving Forces Behind the Golden Bull Market
So far this year, gold prices have risen by more than 60%, supported by geopolitical tensions, aggressive interest rate cut expectations, central bank buying, de-dollarization trends, and significant capital inflows into gold-backed exchange-traded funds (ETFs).
Analysis indicates that the current trading frenzy in gold is partly supported by the rising expectations of interest rate cuts from the Federal Reserve.
Currently, the U.S. federal government is still in a "shutdown," and no one can determine when it will end, which means the U.S. economy may be impacted.
The global central banks’ gold buying spree and the increase in gold ETF holdings have also boosted precious metals.
Currently, there is a trend among global central banks, institutional investors, and individual investors to shift some of the funds originally allocated to U.S. Treasuries towards gold.
Bank of America pointed out that the White House’s "non-traditional policy framework" will continue to favor gold, while factors such as the expansion of the U.S. fiscal deficit and rising debt will also drive gold prices higher next year.
04 The response of the cryptocurrency market
While gold performs strongly, the cryptocurrency market also shows a specific response.
According to CoinMarketCap, the overall cryptocurrency market is showing an upward trend, with several tokens experiencing significant gains, among which gold-backed tokens stand out.
On Gate, the current price of XAUt (Tether Gold) is $4311.06, with an increase of 1.56%.
With the rise in spot gold prices, XAUt, as a gold-backed stablecoin, has seen obvious benefits, and large purchases by institutional investors have also driven up the price.
Meanwhile, the current price of PAXG (PAX Gold) is $4330.57, with an increase of 1.56%.
As another mainstream gold-backed token, PAXG rises in sync with XAUt, reflecting an increased demand from investors for safe-haven gold assets.
It is worth noting that the price of the gold-backed token PAX Gold (PAXG) surged sharply on mainstream cryptocurrency exchanges this morning, with the coin price on some platforms briefly breaking through 4800 dollars.
Community analysis suggests that this upward spike may be due to the liquidation of some short contract traders on Binance, where the maximum upward spike for U-based contract trading pairs reached 15.8%, hitting 5106 USD.
05 The Relationship Between Gold and Cryptocurrency
The relationship between traditional gold and cryptocurrencies is undergoing subtle changes. On one hand, gold-backed tokens provide investors with a convenient way to access the gold market; on the other hand, gold as a traditional safe-haven asset complements the risk attributes of cryptocurrencies.
The performance of gold tokens on the Gate exchange has significantly outperformed most other cryptocurrencies, indicating that in the face of increasing market uncertainty, investors are more inclined to allocate funds to tokens backed by physical assets.
Jeroen Blokland, the founder of Blokland Smart Multi-Asset Fund, stated on social media, "Measured in fiat currency, the rise of gold against fiat currency has indeed brought impressive returns."
However, the true ‘mission’ of gold goes far beyond short-term gains. The ultimate value of gold lies in reshaping the financial system and rebuilding the trust that people have lost due to a debt-driven economy — something that has been achieved multiple times in history.
06 Market Outlook and Investment Opportunities
From a weekly perspective, gold prices are highly likely to achieve a consecutive ninth week of increase this week. Looking back at history, gold prices have never achieved a consecutive 10-week increase since at least the 1970s, and next week, gold prices will undoubtedly attempt to see if they can break through this "paper window."
In addition, with silver prices recently hitting record highs, the total market capitalization of the global silver market is now beginning to challenge the 3 trillion dollar mark.
Bank of America analysts believe: "Silver is about to face a structural supply shortage for the fifth consecutive year, and tight supply may support silver prices."
For investors, the gold tokens on the Gate exchange provide a convenient way to participate in the gold market, especially tokens like XAUt and PAXG that are linked to physical gold, allowing them to benefit from rising gold prices while enjoying the convenience of cryptocurrency trading.
Future Outlook
The true comparison object for gold’s market capitalization may not be those tech giants, but rather the astonishing global money supply and the increasingly large scale of debt. As gold prices continue to rise, the total market capitalization of the global silver market is now also beginning to challenge the $30 trillion mark.
Market analysis suggests that silver is about to face a structural supply shortage for the fifth consecutive year, and the tight supply may support further price increases.
