Should You Buy This Top Silver ETF With Silver Trading Below $75 an Ounce?

Silver went on a tear in 2025, more than doubling in price from about $30 an ounce to almost $78.

It then peaked at around $115 an ounce in late January 2026 before prices began to fall. It's now trading below $75 an ounce. That's a drop of more than a third from its all-time peak.

The price of the semi-precious metal has been highly volatile in the past 18 months, as geopolitical events and policies such as tariffs have pushed it around dramatically. Plus, silver tends to be more volatile than gold because its market is smaller, so changing attitudes toward it can swing prices wildly.

Image source: Getty Images.

Fundamental demand factors remain in place

I would argue that the events adversely affecting silver's price right now are transitory, while the fundamental forces that drove silver dramatically higher over the past year remain largely in place: the artificial intelligence (AI) infrastructure build-out driving demand, coupled with very limited supply.

Data by YCharts.

As an excellent conductor (like copper), silver remains essential to the massive AI data center build-out. Data centers use silver in:

• Server connections and soldering
• Thermal paste and heat dissipation materials
• High-frequency connectors and switches
• Photovoltaic cells powering renewable energy initiatives at server farms
• Electromagnetic shielding for sensitive equipment

Whatever you might think of AI as an investment, there's no doubt that spending on data centers will continue for years. So-called hyperscalers plan to spend some $765 billion this year on AI infrastructure, according to Goldman Sachs, a figure that's expected to increase to more than $1.6 billion by 2031.

Other industrial demand for silver continues unabated, including solar technologies, electric vehicles, and electronics. So, there's no shortage of demand for the materials needed for these massive projects.

Yet supply remains constrained. Silver mining output has not kept pace with demand in recent years, as mine supply growth has remained sluggish. Silver mostly comes as a byproduct of zinc, lead, and copper mining, and it's difficult to merely open new silver mines in response to a spike in demand. Increasingly, supply comes from existing stockpiles.

That's why I like silver right now, especially at this discounted price. Short-term, transitory factors have pushed its price down while longer-term supply/demand trends remain firmly in place.

If you do plan to invest in silver now, the iShares Silver Trust (NYSEMKT: SLV) is a good way to go about it. The fund represents holdings of physical silver stored in vaults by JPMorgan Chase in New York and London. It currently has net assets of about $37 billion.

JPMorgan Chase is an advertising partner of Motley Fool Money. Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and JPMorgan Chase. The Motley Fool has a disclosure policy.