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Silver is still under $40 — But not for much longer [Video]

Silver just hit a 13-year high – and with the AI boom, the clean energy revolution and Trump’s $3 trillion infrastructure deal supercharging demand, analysts at GSC Commodity Intelligence are calling it “the most explosive and asymmetric trade of 2025.”

While traders chase Gold, AI stocks and market fads, Silver is quietly staging one of the most powerful breakouts in the Commodities space. Already up more than 30% year-to-date, Silver has surged past $36 an ounce – its highest level since 2011.

But this isn’t just a short-term price move. It’s the early phase of what could become one of the most explosive Commodity Supercycles in modern history.

Artificial intelligence is going parabolic – and Silver is one of the few materials critical to powering it. Every AI chip, sensor and data center is built on high-conductivity tech – and Silver is the most conductive metal on Earth. 

As global AI infrastructure spending is projected to surpass $1.8 trillion by 2030, Silver demand is moving vertically. From cloud computing, high-speed processors to hyper-scale data centers, Silver usage is poised to skyrocket. 

In a landmark move, Donald Trump secured $3 trillion in investment commitments from Saudi Arabia, Qatar and the UAE to build AI infrastructure, which includes – data centers, chip fabrication plants and robotics hubs – all of which will soak up Silver at an industrial scale. 

This wave of demand is coming online at the worst possible time – as the Silver market faces its fifth consecutive year of a structural supply deficit. To quote analysts at GSC Commodity Intelligence – "the supply side can't keep up with demand – and that’s ultra-bullish for Silver prices." 

Silver posted a 184-million-ounce deficit in 2024, which has rolled into 2025 – marking the fifth consecutive year of a structural shortfall. And Silver isn’t like Gold. It’s not mined in isolation. Over 70% of Silver production comes as a by-product of other metals like Copper and Lead – meaning even a price spike won’t magically unlock new supply. 

Inventories are drying up. Recycling can’t keep pace. And the world is about to realize: there simply isn’t enough Silver to meet the coming wave of demand. This supply squeeze is the hidden fuel behind the Supercycle.

Silver is no longer just a Commodity. It’s monetary hedge in an era of fiat risk. It’s the backbone of AI infrastructure. It’s the energy metal of the future. And it’s one of the few assets with embedded scarcity and real-world utility that cannot be replicated or printed.

This is the most asymmetric trade setup seen in decades. The Silver Supercycle has begun. The momentum is real. And the upside is extraordinary. 

If you missed Gold at $1,500… don’t miss Silver at $36.

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: 

Author

Phil Carr

Phil Carr

The Gold & Silver Club

Phil is the co-founder and Head of Trading at The Gold & Silver Club, an international Commodities Trading Firm specializing in Metals, Energies and Soft Commodities.

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