The price of silver soared in 2025, hitting an all-time high above $80 before dropping 10% on Dec. 29. The iShares Silver Trust fell about 8.5% in Monday trading. Market observers attribute the sell-off to concerns of a speculative bubble and profit-taking. Despite the drop, silver remains a solid investment due to its industrial uses and supply shortages. The metal is in high demand for AI data centers and electric vehicles. The Federal Reserve’s easing cycle and the ongoing AI infrastructure build-out further support silver prices.

Silver has numerous industrial uses, including in AI data centers and EVs. The metal is in high demand due to its conductivity and antibacterial properties. The U.S. Department of the Interior added silver to its list of critical minerals in response to the growing need for silver in AI data centers. The global AI race and data center growth are expected to continue driving demand for silver. Additionally, the Federal Reserve’s monetary easing cycle is favorable for silver prices, making it an attractive investment option for 2026.

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