Silver reaches £46.70 per ounce as AI demand meets geopolitical easing

Silver climbed to around $63 per troy ounce on Wednesday, roughly £46.70 in sterling, as two forces aligned: easing Middle East tensions and accelerating demand from artificial intelligence data centres. The metal is now up nearly 6 per cent for the week and continuing to benefit from the structural tightness that has defined 2026.

The immediate catalyst is the Iran-Oman agreement on reopening the Strait of Hormuz. This deal reduces geopolitical risk and pushes oil prices lower, easing inflation expectations and weakening the US dollar. A softer dollar makes silver cheaper for pound-based buyers. Treasury yields have also declined, improving the appeal of metals that pay no income.

The deeper story lies in silver's industrial demand. Four major hyperscalers, Amazon, Microsoft, Alphabet and Meta, are guiding toward roughly £580 billion in combined capital spending for 2026, up 77 per cent from last year, most directed at AI infrastructure. Silver is essential because it offers superior electrical and thermal conductivity to any alternative. Industry estimates put data centre consumption at 20 to 40 million ounces annually, with projections rising to 40 to 80 million ounces by 2030. This sits atop an existing global supply deficit now in its sixth consecutive year, as silver production remains constrained by byproduct limits in zinc and copper mining.

For UK buyers, the all-in cost includes spot price, dealer premium, the standard 20 per cent VAT on silver, and delivery fees. This is not financial advice.