Gold’s market value now 6x higher than world’s 10 largest banks

The value of gold continues to surge to unprecedented heights despite facing economic headwinds while retaining its status as the ultimate store of wealth. The growth has resulted in gold controlling a significant market cap compared to selected banking entities.

In this line, data acquired and calculated by Finbold on February 14 indicate that gold accounts for a market capitalisation of $12.34 trillion. The valuation is at least six times more compared to the combined market cap of $2.03 trillion controlled by the world’s ten largest banks.

Indeed, the American banking giant JPMorgan Chase is the most valued bank with a market cap of $418.34 billion, followed by Bank of America at $285.08 billion, while Industrial and Commercial Bank of China is third with a market cap of $216.61 billion. Wells Fargo occupies the fourth spot at $184.52 billion, while Morgan Stanley is fifth with a valuation of $166.54 billion.

Other notable banks include China Construction Bank ($162.11 billion), Charles Schwab ($150.12 billion), HSBC ( $150.09 billion), Agricultural Bank of China ($149.58 billion), and Royal Bank Of Canada ($144.01 billion).

How gold managed to dwarf banking giants in market cap

The research highlighted the significance of gold’s market cap compared to leading global banks. According to the research report:

“Gold’s significant market capitalisation complements the asset’s historical status as a safe haven for investors seeking to protect their wealth against economic and political uncertainties. Notably, the reputation has been put to the test over the past year as the global economy continues to face uncertainty arising from inflation, interest rate hikes, and the lingering threat of recession.”

Looking ahead gold will likely sustain its significant market cap as banking stocks continue to face volatility from the declining economic conditions.