Often regarded as both a precious and industrial metal, silver plays a vital role in modern technology and clean energy applications. Widely used in applications ranging from solar panels, EVs to semiconductors, silver benefits from unique properties like superior conductivity, durability and resistance to corrosion, making it nearly impossible to substitute. These structural demand drivers continue to strengthen silver’s long-term growth outlook and reinforce investor interest in the metal.
Silver has gained about 20.55% year to date and nearly 164.27% over the past year, significantly outperforming gold, which has gained 8.50% year to date and 44.34% over the past year. Silver has added about 14% over the past month, reflecting strong bullish momentum, driven by rising industrial demand, clean energy expansion and growing investor interest.
According to the Silver Institute, from medical equipment to almost every computer, mobile phones, automobiles, household appliances, solar power systems, EV applications and advanced supercomputers used in AI, silver is an indispensable component across multiple industries.
Clean Energy Boom Strengthens Silver’s Bullish Outlook
The transition toward clean and renewable energy is increasingly being accelerated by structural tailwinds such as energy security, electrification and expanding AI-driven infrastructure, supporting sustained long-term investment in the sector. Meanwhile, disruptions in fossil fuel markets and rising energy security concerns are expected to further accelerate global clean energy investments, positioning silver as a key beneficiary due to its expanding role across renewable energy applications.
Per the Silver Institute, the metal plays a crucial role in solar energy production, particularly in photovoltaic (PV) cells. Silver’s expanding use in solar applications is becoming an increasingly important driver of long-term demand growth for the metal.
As per Benzinga, as quoted on Yahoo Finance, industrial applications now account for roughly 60% of global silver consumption, with solar PV panels alone projected to consume nearly 120–125 million ounces of silver in 2026. Rising demand from AI hardware, electric vehicles, power electronics and high-density data centers is further strengthening silver’s industrial demand outlook.
Additionally, the energy market turmoil stemming from the Middle East conflict is reinforcing the global focus on energy security and independence. As economies and consumers increasingly prioritize the shift toward EVs and alternative energy solutions, the trend is expected to become more structural over the long term, providing another strong tailwind for silver demand.
AI Infrastructure Boom Adds Momentum to Silver Demand
Silver is starting to attract renewed attention as investors look beyond safe-haven demand and focus on metals benefiting from the global AI and infrastructure expansion, as per Yahoo Finance. Silver has significant industrial applications in electronics, electrical systems and semiconductor-related technologies, positioning it to benefit from rising hard-infrastructure demand.
According to CNBC, silver appears to be attracting stronger retail investor interest amid the AI-driven industrial boom. Silver is also widely used for its superior thermal conductivity and electrical applications in data centers, which are becoming increasingly critical in supporting rising AI-related demand.
Per the abovementioned CNBC article, investor sentiment toward silver ETFs has strengthened considerably, with trading activity in iShares Silver Trust (SLV) pointing to growing bullishness. Options positioning remained heavily call-driven, as call volumes more than doubled puts and over 90,000 calls were bought compared with roughly 31,000 puts.
Silver ETFs to Explore
Investors should adopt a long-term approach to silver investing, looking beyond any potential short-term price volatility and focusing on the metal’s strong bullish fundamentals driven by rising industrial usage, the renewable energy transition and growing clean energy demand.
Below, we have highlighted a few funds in which investors can increase their allocation to gain greater exposure to silver.
iShares Silver Trust SLV has gained 1.15% over the past month. SLV has added 127.14% over the past year and charges an annual fee of 0.50%.
abrdn Physical Silver Shares ETF SIVR has gained 1.17% over the past month. SIVR has added 127.55% over the past year and charges an annual fee of 0.30%.
Global X Silver Miners ETF SIL has fallen 0.72% over the past month. SIL has added 120.82% over the past year and charges an annual fee of 0.65%.
Amplify Junior Silver Miners ETF SILJ has fallen 1.07% over the past month. SILJ has added 143.35% over the past year and charges an annual fee of 0.69%.
iShares MSCI Global Silver Miners ETF SLVP has fallen 0.19% over the past month. SLVP has added 135.52% over the past year and charges an annual fee of 0.39%.
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iShares Silver Trust (SLV): ETF Research Reports
abrdn Physical Silver Shares ETF (SIVR): ETF Research Reports
Global X Silver Miners ETF (SIL): ETF Research Reports
Amplify Junior Silver Miners ETF (SILJ): ETF Research Reports
iShares MSCI Global Silver and Metals Miners ETF (SLVP): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
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