Silver Prices Plunge Amid Rising Demand for AI Data Centers

Investors are considering whether to buy silver after its price plummeted from a peak of over $115 per ounce in January to around $58 an ounce. The decline is attributed to rising demand for silver to serve the massive AI data center build-out, driven by growing investment in cloud facilities that use silver for various components such as server connections and soldering.

According to McKinsey, global data center spending could reach a staggering $7 trillion by 2030. If investors believe this prediction is accurate, it may be an opportune time to invest in silver producers.

Rising demand for silver has put pressure on its supply, which has not kept pace with demand in recent years due to sluggish mine supply growth.

Silver stocks such as iShares Silver Trust (SLV), First Majestic Silver (AG), Wheaton Precious Metals (WPM), and Pan American Silver (PAAS) have fallen since the peak, despite some companies reporting higher production.