Economist Dr. Fidaa Mansour Al-Jawhari said the silver market is undergoing a profound structural transformation, driven by the rapid expansion of artificial intelligence (AI) and fifth-generation (5G) communications technologies, which have become major engines of industrial demand. As a result, silver has evolved beyond its traditional role in jewelry and investment into a strategic metal underpinning the global digital economy.
Al-Jawhari explained that silver possesses the highest electrical and thermal conductivity of any naturally occurring element, making it indispensable for advanced electronic applications, particularly as computing power and communication technologies continue to evolve.
She noted that the AI revolution extends far beyond software development. It is supported by massive investments in data centers, high-performance servers, and advanced semiconductor processors, all of which rely on silver in printed circuit boards, conductive pastes, semiconductor packaging, and thermal management systems.
According to Al-Jawhari, the global race to build new AI data centers is accelerating silver consumption across servers, electrical switches, and power distribution systems, ensuring reliable power flow and operational efficiency. Industry estimates indicate that data centers alone could account for more than 10% of total silver demand within the electrical and electronics sector in the near future.
She also pointed out that 5G networks have emerged as another key driver of silver demand. Unlike previous generations of wireless technology, 5G requires millions of small-cell base stations and significantly more sophisticated electronic infrastructure, increasing the use of silver in connectors, semiconductors, and high-frequency electronic components that enable faster and more reliable data transmission.
Al-Jawhari added that the growing adoption of AI-enabled smartphones and 5G-compatible devices is encouraging consumers to upgrade their electronics more frequently, further supporting industrial silver demand. Some industry estimates suggest that certain 5G smartphones contain approximately 10% to 15% more silver than comparable 4G devices due to their more complex circuitry and higher-frequency communication capabilities.
She further noted that demand for silver from 5G-related applications could reach approximately 23 million ounces by 2030, representing growth of more than 200% compared with the early stages of the technology's deployment.
Al-Jawhari explained that the global map of silver demand is increasingly centered around leading technology economies. China remains the world's largest manufacturing hub for electronics, smartphones, and telecommunications equipment, while Taiwan continues to dominate advanced semiconductor production. South Korea benefits from its leadership in manufacturing high-bandwidth memory (HBM) chips used in AI servers, and the United States continues to lead global investment in artificial intelligence, cloud computing, and hyperscale data centers.
She emphasized that the relationship between the technology and energy sectors has become increasingly interconnected, as expanding data centers require enormous amounts of electricity. This, in turn, drives investment in upgrading power transmission and distribution networks, which also rely on silver-containing electrical contacts and switching components to ensure operational efficiency and grid stability.
Al-Jawhari highlighted another important distinction between silver and gold: unlike gold, which is often stored in bullion or reserves, much of the silver used in advanced electronics is permanently consumed in industrial applications. Recovering microscopic quantities of silver from electronic devices is technically challenging and economically expensive, meaning that a significant portion of industrial silver demand permanently removes metal from the global supply chain.
She concluded that although some industries—particularly the solar sector—are working to reduce silver usage in order to lower manufacturing costs, the rapid expansion of artificial intelligence, advanced communications infrastructure, cloud computing, robotics, and the Internet of Things (IoT) is creating new and sustainable sources of demand. These emerging technologies are expected to offset reductions in other sectors and reinforce silver's position as one of the world's most strategic industrial metals in the years ahead.
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