1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
The silver market has recently experienced significant volatility. Silver prices rose sharply in 2025, climbing from around $30 per ounce to a record closing price of $77 on December 26, with an intraday high once surpassing $80. However, on December 29, silver faced a sell-off, with prices dropping by 10% in a single day. This adjustment led to significant pullbacks in funds tracking the spot price of silver, such as the iShares Silver Trust (SLV), which fell approximately 8.5% that day, despite maintaining a cumulative gain of 162% for the year. Market analysis attributes this decline to traders’ concerns over the rapid price increase and profit-taking by some investors.
Silver not only serves, like gold, as a tool to hedge against inflation and economic risks but also boasts a wide range of industrial applications. Its excellent conductivity makes it a key material in the construction of artificial intelligence data centers and the manufacturing of electric vehicles. Additionally, silver is increasingly being used in fields such as solar cells, battery technology, and medical antibacterial devices. Research institution Yardeni Research points out that the rapid development of AI data centers and the continuous increase in electric vehicle production are significantly driving the growth in silver demand.
Amid robust demand, silver supply is showing signs of shortage. Due to the rising demand for resources such as silver and copper driven by artificial intelligence and related infrastructure, the U.S. Department of the Interior has listed silver as a critical mineral. The global competition in artificial intelligence is accelerating the construction of data centers, whose electricity consumption is expected to increase from the current 2% of global total demand to 9% by 2050. Measured by electricity demand, the annual growth rate of data centers has risen from 8% in 2022 to 19% in 2024 and is projected to maintain a high growth rate of 19% to 21% in the coming years.
The Federal Reserve’s monetary easing policies also provide support for silver prices. An accommodative environment typically boosts industrial activity while potentially weakening the U.S. dollar, thereby enhancing the appeal of silver as an industrial raw material and a safe-haven asset. History has shown that during overall upward cycles for precious metals, silver, due to its relatively lower price and higher volatility, often exhibits more significant price elasticity.
As an important investment tool, the iShares Silver Trust (SLV), with assets of approximately $27 billion, primarily holds physical silver in JPMorgan’s vault and is managed by BlackRock. If the Federal Reserve maintains its interest rate-cutting trend in 2026 while the fields of artificial intelligence, electric vehicles, and renewable energy continue to develop, the fundamental support for silver will remain robust. The recent price adjustment may provide long-term investors with a more attractive timing for allocation.
