Silver Prices Rebound as Data Center Demand Soars

Silver is rebounding after falling to around $56 an ounce in recent months. The price has now risen to over $64, a gain of 8% in little more than a week.

The rebound is driven by increasing demand from data centers for the metal's high conductivity, corrosion resistance, and stability. Despite skepticism about potential returns, major hyperscalers such as Meta Platforms, Amazon, Alphabet, and Microsoft are continuing to invest heavily in AI data centers, which could reach $7 trillion in global spending by 2030.

The stocks of silver producers like First Majestic Silver (NYSE: AG), Wheaton Precious Metals (NYSE: WPM), and Pan American Silver (NYSE: PAAS) have risen sharply in August. Wheaton Precious Metals reported stellar second-quarter results, with earnings nearly doubling from the same period a year ago and revenue jumping 85%.

A good way to invest directly in physical silver is through the iShares Silver Trust (NYSEMKT: SLV), which owns silver bars stored in bank vaults in London and New York. The exchange-traded fund (ETF) is up 7% over the past month, but investors are cautioned not to rush into Wheaton Precious Metals without considering other investment options.