Silver Is Down Big From Its Peak. Is Now the Time to Buy the Dip?
2026-07-31 14:05
•Matthew Benjamin •The Motley Fool
••••••• •••••••••• Axe Cap view
Silver’s Sharp Drop: Opportunity or Pitfall for SA Investors?
Silver has halved in price since January, but strong data center demand may offer a buying window.
Silver’s steep fall to around $58/oz from over $115/oz caught many off guard, especially given persistent supply challenges in the market. The selloff reflects fears that AI-driven data center spending, a major future use for silver in electronics, might stall. Yet, global consulting firm McKinsey still expects $7 trillion of data center investment by 2030, suggesting long-term demand remains intact. For South African investors, AngloGold Ashanti is the closest proxy on the JSE with meaningful silver exposure and a raised 2026 production outlook. The Rand’s slackness lately also cushions local buying costs in dollar terms. The risk: if AI growth slows abruptly or central banks tighten beyond expectations, silver prices could stay weak. But if infrastructure projects pick up as forecast, SA resource shares with silver could rebound ahead of broader market shifts. this is just our opinion and not financial advice
Buy AngloGold Ashanti selectively on dips below R400, given its improved silver outlook and Rand hedge. Keep USD/ZAR on watch—significant rand strengthening could further boost returns.
- AngloGold Ashanti
- USD/ZAR
- Slower-than-expected AI data center investment
- Sustained US dollar strength tightening Rand liquidity
7/10
Silver has fallen 50% from its January peak of $115/oz to $58/oz, driven by investor concerns about AI data center spending despite strong long-term demand fundamentals. McKinsey projects $7 trillion in global data center spending by 2030, and major hyperscalers continue their infrastructure investments. The article suggests this dip may present a buying opportunity for silver and related producers.
Our take is based on reporting first published by The Motley Fool.