The asset with the top market capitalisation is not a company, but a precious metal. Gold is the world’s most valuable asset, ahead of the stock of any corporation. Throughout history, it has maintained or increased its value through all market fluctuations, establishing it as the ultimate safe-haven asset.

The global accumulated public debt as a percentage of gross domestic product has created an imbalance in terms of the capacity to generate wealth. States are paying more than they can afford and are increasing the fiscal pressure on a population hit by high interest rates in an attempt to contain inflation.

In this context of economic uncertainty, the intrinsic value of gold, which carries no credit risk and cannot be inflated, has made it the ultimate safe-haven asset for investors and particularly attractive for diversification and assured returns on savings.

While many investors are looking ahead to the expected rate cuts by the Federal Reserve (Fed) and the European Central Bank (ECB) later this month, the volume of trading in the golden metal has exceeded 150 billion euros per day in the last twelve months, making it the most traded financial asset after currencies.

On the other hand, company stocks can fluctuate dramatically due to several variables. We have seen this happen over the last few years with the big technology companies, where their market capitalisation has faced considerable headwinds from fears of overvaluation and the spectre of rising interest rates, although they have staged a remarkable recovery since the beginning of the year.

This has not been the case for the price of gold, which continues the upward trend it has experienced throughout its history. This year alone, it has already gone up by 17%, after rising by 15% in 2023 due to the US banking crisis, geopolitical tensions, military conflicts and the Fed’s monetary policy.

The most brilliant asset

Market capitalisation is the total value of a company’s shares on the stock market and is calculated by multiplying the total number of outstanding shares of a company by the current unit price of each share. In the case of precious metals, market capitalisation is obtained by multiplying their current price by the price of the existing stock of the metal that has already been mined.

Stocks with larger market capitalisations tend to be a safer bet, yet smaller companies may have greater potential for rapid growth and higher returns. In general, stocks with a large market capitalisation help investors diversify their portfolios to manage risk.

Gold, as an asset, has a current market value of $15.899 trillion. Far above Microsoft ($3 trillion), Apple ($2.9 trillion) and NVIDIA ($2.8 trillion). It exceeds the total value of the next five companies in the ranking and by almost ten times the value of silver, making it the world’s most valuable asset and a haven if we want to protect our savings.

If you want to discover the best option to protect your savings, go to Preciosos 11Onze. We will help you buy at the best price the ultimate safe haven asset: physical gold.