ETO Markets Buzz | Silver Reprices as AI, Electrification and Supply Deficits Reshape Demand

Global Market Overview | June 2026

According to ETO Markets analysis, global markets are being supported by easing geopolitical risk, resilient US activity data, and continued enthusiasm around artificial intelligence. US equities reached fresh record highs as US-Iran negotiations were extended by another 60 days, reducing immediate concerns around Middle East supply disruption and helping stabilise crude oil prices.

Technology remained a key driver of sentiment. Dell surged nearly 33% after raising guidance on strong AI server demand, while broader economic data also surprised to the upside. Chicago PMI jumped to 62.7 from 49.2, and durable goods orders rose 7.9%, well above the 3.5% consensus. Monthly PCE inflation came in below expectations, although annual inflation remains elevated at 3.8%, still well above the Federal Reserves target.

Silver Demand Gains Structure

This weeks ETO Markets Buzz focuses on silver. Silver occupies a unique position as both a precious metal and an industrial commodity, allowing it to benefit from economic growth, technological innovation and monetary uncertainty.

The strongest structural driver is the accelerating investment cycle in AI infrastructure, data centres, electrification, renewable energy and electric vehicles. Silver has the highest electrical conductivity of any metal, making it critical for electrical components, semiconductors, cooling systems, photovoltaic cells, charging networks and advanced manufacturing.

AI and EVs Expand Demand

AI infrastructure is one of the fastest-growing sources of silver demand. As hyperscale data centres, high-performance computing, networking hardware and power systems expand, silver usage is expected to rise significantly.

Electric vehicles remain another major growth channel, with demand potentially doubling by 2030 as global EV penetration increases. Combined, AI and EVs could add around 90 million ounces of annual silver demand by 2030, equivalent to nearly half of current solar-sector consumption. Solar demand itself reached 197.6 million ounces in 2024, reinforcing silvers role in the energy transition.

Supply Deficits Tighten Market

The supply side remains constrained. Around 70% of global silver production comes as a by-product of copper, lead, zinc and gold mining, which means supply cannot quickly respond to higher silver prices.

New mine development can take a decade or more, while declining ore grades and stricter environmental requirements continue to limit supply growth. The market has already recorded persistent deficits in recent years, including shortfalls of 89 million ounces in 2021, 272 million ounces in 2022, 210 million ounces in 2023, 151 million ounces in 2024 and an estimated 95 million ounces in 2025.

Valuation Supports Silver

Silver also appears attractive relative to gold. The gold-to-silver ratio has historically averaged around 60 to 70, but has frequently traded above 80 in recent years, suggesting silver remains relatively undervalued.

If gold stays elevated due to central bank purchases, geopolitical uncertainty, rising government debt and safe-haven demand, any normalisation in the gold-to-silver ratio could allow silver to outperform. Historically, silver often lags early in precious metal bull markets before delivering stronger gains later in the cycle.

Macro Conditions Remain Supportive

A more supportive monetary environment could further benefit silver. Precious metals tend to perform well when real yields decline, as the opportunity cost of holding non-yielding assets falls.

With inflation still above target in several economies and major central banks approaching the end of their tightening cycles, real yields could come under pressure if policy easing begins while inflation remains elevated. Silvers smaller market size means even modest investment inflows can have an outsized price impact.

Outlook

Looking ahead, ETO Markets expects US-Iran negotiations, AI infrastructure spending, energy transition investment, inflation data and central bank communication to remain key drivers of silver and broader commodity markets. Upcoming US labour data, PMI surveys, Chinas official and Caixin PMIs, Eurozone inflation, GDP releases from Australia, India and Turkey, and technology earnings from Broadcom, Palo Alto Networks and CrowdStrike will shape near-term expectations.

Disclaimer

The information contained herein is for general reference only and does not constitute investment advice, a solicitation, or an offer to buy or sell any financial products.

ETO Markets does not guarantee the accuracy, completeness, or timeliness of the information and shall not be liable for any losses incurred from reliance on such content.