**Trump-Powell Feud, Silver Becomes the World's Second Most Valuable Asset**
Silver prices surged again to US$85.23 on Tuesday (13/01) ahead of the Federal Reserve meeting. In addition, its market capitalization rose slightly by 0.27%, allowing it to surpass NVIDIA and become the world's second most valuable asset.
On the other hand, Bitcoin remains at position 8 with a market capitalization of US$1.8 trillion, after previously surpassing Alphabet's stock, Google's parent company, to become the world's fifth most valuable asset.
The silver surge occurred as markets grew concerned about the independence of The Fed. For reference, the U.S. Department of Justice has decided to investigate Federal Reserve Chair Jerome Powell.
Powell described the investigation as a political attack from the White House, stemming from his refusal to lower interest rates in line with President Trump's wishes. This prompted investors to shift toward safe-haven assets.
Although silver prices have strengthened significantly since last year, this rise of about 7% approaching a new record is primarily driven by geopolitical and institutional factors, not solely industrial demand fundamentals.
Since the silver market is relatively smaller than gold, this defensive capital flow has a greater impact on its price, making silver highly sensitive to policy uncertainty.
$XAU $XAG
