Silver: 'Poor Man's Gold' No More?

For decades, silver was dismissed as “poor man's gold” — a volatile, secondary asset that followed in gold's shadow. That narrative has officially collapsed. 

The market reached a psychological breaking point in January as a single one-ounce American Silver Eagle crossed the $100 mark at retail, a price point once considered a fantasy.

• AG stock is climbing. See the chart and price action here.

Silver's Historic Rally

Silver has surged nearly 200% over the past 12 months, climbing from roughly $30 in early 2025 to over $88 per ounce on the spot market Tuesday, according to Trading Economics. 

The iShares Silver Trust (NYSE:SLV) has gained 43% in the last month alone, and silver miners, such as First Majestic Silver Corp. (NYSE:AG) and Pan American Silver Corp. (NYSE:PAAS), have surged higher. 

The Silver Squeeze 2.0

The “silver squeeze” retail investor-driven movement, amplified across platforms like X and Reddit, has successfully drained retail inventories. 

Unlike the short-lived 2021 attempt, this iteration is backed by massive physical drawdowns. Investors are demanding physical delivery, causing premiums to skyrocket as dealers struggle to restock.

AI and Solar: The Industrial Engine

Another major driver of silver's rally is the metal’s role in the tech revolution. Silver is the most conductive element on Earth, making it irreplaceable for two critical sectors:

• Artificial Intelligence: Every AI server, high-speed chip and data center rack requires silver for its superior conductivity and reliability. As Big Tech expands its AI clusters, silver demand has scaled exponentially.
• Solar Technology: Photovoltaic demand has hit record highs as nations race toward 2030 green energy targets. 

With the world entering its sixth consecutive year of structural supply deficit, according to the Silver Institute, and China implementing new export restrictions, the shortage of physical silver could widen as the metal becomes a strategic bottleneck in the modern world.

Photo: Oselote from Shutterstock