By Lee Samaha
Publication Date: 2026-02-18 04:05:00
Industrial demand dominates overall silver demand, and the next generation of data centers is likely to increase long-term demand.
Commodities like silver can experience large price spikes in response to what often seem like relatively small changes in supply and demand. That’s one key reason the price of silver has soared over the last few years. It’s also why a new source of demand, driven by a new generation of data centers using Nvidia (NVDA +1.18%) architecture, could create a second wind of demand for silver. Here’s why.
The demand for silver
Silver’s use in jewelry and silverware is high profile, but actually, industrial demand (most notably in photovoltaic cells in the solar industry) is far more critical. The chart breaks out the estimated source of silver demand in 2025.
As with any commodity, a surging price will cause some demand destruction, and the Silver Institute is forecasting a 1% decline in demand in 2025. Silver demand is expected to stay consistent in 2026, and supply is expected to increase by 1.5%. In normal circumstances, that’s usually bearish for silver prices, but the Silver Institute’s estimates for 2026 still leave the market undersupplied — a bullish indicator.
Image source: Getty Images.
Nvidia and a nonnegotiable source of demand
The technology company’s architecture is driving the introduction of new 800V high-voltage direct current (HVDC) data centers, set to launch in 2027. It’s something that strengthens the investment case for…
