Silver's record break above $60 shows how central the metal has become to the AI build-out

Core Insights - Silver prices have surged past $60 per troy ounce, driven by increasing demand linked to AI infrastructure development [1][5] - The metal has more than doubled in value in 2025, significantly outperforming gold, which has seen a 60% increase [1] - The growing importance of silver in the AI economy is highlighted by its use in next-generation chips and digital applications [2][3] Group 1: Demand Drivers - The demand for silver is being fueled by the rapid expansion of AI data centers and the rising need for silver-rich chips like GPUs and TPUs [1][2] - Industrial demand and supply tightness are contributing to silver's price gains, with inventories under strain [2][6] - The Silver Institute and Oxford Economics report that AI's growth is driving increased silver demand across various digital economy applications [2][3] Group 2: Market Dynamics - The silver market is characterized by tight supply conditions, with high borrowing rates and falling stocks [6] - Retail traders are becoming increasingly aware of silver's price surge, indicating a shift in market interest [6] - The overall electronics ecosystem, including autonomous vehicles and robotics, is expected to further increase reliance on silver-rich components [4]