Silver has climbed from an August low near $56 an ounce to more than $64 an ounce this week, an 8% gain in a bit more than a week. The rebound follows a sharp pullback from January's record high, and it comes as demand for silver from AI data centers has not let up. Producer stocks such as First Majestic Silver, Wheaton Precious Metals, and Pan American Silver rose sharply in August alongside it.
Silver climbed from a recent low of about $56 an ounce to more than $64 an ounce this week, a gain of 8% in a bit more than a week, Motley Fool analyst Matthew Benjamin wrote. The move has lifted stocks of silver producers too, sending shares of First Majestic Silver, Wheaton Precious Metals, and Pan American Silver sharply higher this month.
Boom, bust, and rebound
Silver surged through 2025, running from about $30 an ounce at the start of the year to a record $115 an ounce roughly 13 months later. The run was largely due to cloud computing firms' heavy investment in AI data centers, since silver's high conductivity, corrosion resistance, and stability make it a critical input to those facilities. Meanwhile, supply stayed constrained as silver mining output growth stayed sluggish for years.
But that enthusiasm ran too far, and skepticism about AI data centers' eventual returns crept into the market in recent months. As a result, silver and copper prices fell, along with shares of other data-center suppliers like memory chipmakers and construction equipment makers. That sell-off also went too far: silver fell to around $56 an ounce, half its January peak, before this month's rebound.
Data center spending keeps growing
Benjamin expects silver to keep climbing because the AI data center build-out will only expand further. McKinsey estimates global data center spending could reach $7 trillion by 2030. Despite recent investor reservations, major hyperscalers including Meta Platforms, Amazon, Alphabet, and Microsoft appear to be pressing ahead with their spending plans.
Wheaton's results and the silver ETF
Wheaton Precious Metals, one of the producers that rallied in August, reported second-quarter results last week. Earnings nearly doubled from a year earlier and revenue jumped 85%, partly reflecting higher gold prices, since the company gets about half its revenue from gold. Gold has also climbed higher in August.
Investors looking for direct exposure to the metal have another option: the iShares Silver Trust, an ETF that holds physical silver bars in bank vaults in London and New York. The fund is up 7% over the past month.
Source: The Motley Fool
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