How Nvidia and AI are Driving Demand for Silver Higher

Group 1: Core Insights - Industrial demand for silver is significantly higher than jewelry and silverware, with photovoltaic cells in the solar industry being a major contributor [3] - The introduction of new 800V high-voltage direct current (HVDC) data centers, driven by Nvidia's architecture, is expected to create a substantial increase in long-term silver demand [7][8] - The Silver Institute forecasts a 1% decline in overall silver demand in 2025, but supply is expected to increase by 1.5%, leaving the market undersupplied, which is a bullish indicator for silver prices [5] Group 2: Demand Dynamics - The new data centers are likely to use more silver due to its superior thermal conductivity and oxidation resistance compared to copper, especially at high voltages [7] - Demand for silver in these new data centers is expected to be relatively price-inelastic, meaning significant price increases will be needed to curb demand, indicating strong underlying demand for silver [9] - Net physical investment in silver is crucial, with growth in 2025 despite flat industrial demand, suggesting that investor interest remains strong [11] Group 3: Market Outlook - Current corrections in silver prices are acknowledged, but the fundamentals driven by photovoltaic, electric vehicle, and data center demand remain positive [12] - The anticipated demand from new data centers suggests that investors should consider buying silver during price dips this year [12]