After falling to $55.5 per ounce (oz) in mid-July, their lowest level since early December, silver prices began trending upward in early August, reaching $68.3/oz on Aug. 25.
Silver’s recent gains have coincided with a broader rally in precious metals. Gold rose from around $4,000/oz in late July to more than $4,600/oz in late August, supported by geopolitical and fiscal uncertainty, lower bond yields and increased safe-haven demand.
“We remain positive towards gold and silver prices, for both late 2026 and into 2027,” Philip Newman, Managing Director of independent research consultancy Metals Focus, told pv magazine. “This partly reflects our expectation that the US Fed will not raise interest rates this year, which in turn will attract increased institutional investor interest. As such, gold could reclaim the $5,000 level and silver $80 before year-end.”
According to Michael DiRienzo, president and CEO of the Silver Institute, the silver market remains “fluid” as the industry heads toward its sixth consecutive annual structural deficit. He expects the shortfall to reach nearly 50 million oz this year.
DiRienzo also explained rising demand from sectors beyond photovoltaics is contributing to silver consumption, pointing in particular to artificial intelligence (AI), data centers, electric vehicles and broader electrification trends. “AI, data centers, electric vehicles and the electrification of everything are supporting demand,” he told pv magazine. “The green revolution continues, but AI and data centers are emerging as important sources of demand that weren’t on the map a few years ago.”
Silver is used in AI and data centers primarily as an electrical and electronic material. Key applications include electrical contacts, connectors, switches, relays, circuit boards, semiconductor packaging and power-management equipment. Data centers also require large amounts of electrical infrastructure such as switchgear, power distribution units, backup-power systems and cooling equipment, some of which contains silver-bearing components.
Over the past 12 months, silver prices have experienced an exceptionally volatile rally. Prices rose from around $45/oz in September 2025 to $70–75/oz toward year-end, before surging to an all-time high above $120/oz in late January. The rally then reversed sharply, with prices falling below $80/oz in early February and then reaching around $57/oz in late June.
Silver is a critical mineral for the solar industry and rising prices have put pressure on the PV module market to curb its use. In September, research found the global solar industry could account for 40% of global silver demand by the end of the decade.
