Abstract:
This paper empirically investigates the evolving economic relationship between silver and the rapidly expanding Artificial Intelligence (AI) infrastructure sector. The prevailing narrative of AI as a purely digital phenomenon overlooks its profound physical footprint, characterized by massive capital expenditures in power-hungry data centers. We hypothesize that this build-out has established a new, structural demand driver for silver, altering its traditional market correlations. Using Exchange-Traded Funds (ETFs) as liquid market proxies—iShares Silver Trust (SLV), Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) and Consumer Staples Select Sector SPDR Fund (XLP)—this study employs correlation and multiple regression analysis on daily returns data from 2021 to 2025. The results reveal a fluctuating but persistent positive correlation between silver (SLV) and AI infrastructure (SRVR). More critically, a multiple linear regression model confirms a statistically significant positive relationship between the returns of SLV and SRVR (coefficient = 0.298, p < 0.001), while showing no significant link to the non-digital consumer staples sector (XLP, p = 0.7174). These findings suggest that silver is exhibiting a measurable decoupling from traditional economic segments, aligning more closely with the physical demands of the digital economy. The conclusions hold significant implications for commodity analysis, investment strategy and portfolio diversification, highlighting silver's emerging role as a key industrial commodity for the AI era.
