Silver (Silver) - A major investment opportunity for valuable assets: What investors need to know

Why Are Many People Attracted to Silver During This Time

Recently, the Silver market has garnered increased interest from investors worldwide. This phenomenon is not coincidental but results from the convergence of multiple factors that are changing the fundamentals of the market.

The fact that many analysts are beginning to recommend investing in Silver partly stems from the recognition that current prices may not reflect the true value of this asset, especially when compared to Gold.

The Long History of Silver: From Past to Present

The Uses of Silver Since Ancient Times

Humans have recognized the value of Silver for over 4,000 years. In an era before paper money or digital currencies, silver metals were used as a medium of exchange and a store of value for centuries.

Historical evidence shows that:

• From 3000 BCE, Silver was used in the form of rings and bars with standard weights, serving as a medium of exchange.
• In the 16th century, Spain began producing Silver coins accepted and circulated across continents. This asset became the first globally recognized currency.
• In the United States, Silver was legally recognized as a means of payment until 1857.
• Although its official monetary role ended with the abandonment of the silver standard in 1935, the production of Silver coins and bars for investment continues to this day.

Silver: An Unreplaceable Asset in the Tech Era

The Unique Properties That Make Silver Valuable

What distinguishes Silver from Gold today are its unique properties that no other metal can replace. These attributes have been scientifically confirmed and have become pillars of modern industry:

Excellent electrical and thermal conductivity: Almost all electronic devices use Silver to ensure efficient electrical flow. This is why Silver is an irreplaceable component.

Highest reflectivity: This property is crucial for clean technology industries, especially in enhancing solar cell efficiency. Silver helps convert sunlight into electricity effectively.

Antibacterial properties: Silver has been widely used in medical fields, from special dressings for burn patients to surgical tools and water filtration systems.

Malleability and ease of shaping: These qualities make Silver suitable for manufacturing microelectronics requiring intricate details.

Economic Factors Driving Demand

In the coming years, demand for Silver is expected to rise continuously, driven by three major trends:

• Transition to clean energy: Global solar projects require enormous amounts of Silver.
• Development of electric vehicles: Modern vehicles demand more Silver components than traditional cars.
• Emerging 5G and AI technologies: Communication networks and artificial intelligence rely on Silver for processing.

The Current Silver Market: Understanding the Structural Deficit

Supply and Demand Imbalance

The World Silver Survey 2025, published by The Silver Institute, reveals an interesting situation: the global market is facing a “structural deficit,” a problem persisting for four years.

This means: the world’s demand for Silver exceeds the amount that can be produced and recycled.

Industry Pressure

Industrial demand hit a record high of 680.5 million ounces in 2024, accounting for nearly 59% of total demand.

Industries with the highest Silver demand include:

• Solar energy
• Electric vehicles
• Electronics and 5G communication
• Artificial intelligence technologies

Supply Side: More Problems Than Expected

Production faces several issues that cannot be quickly resolved:

• Production limitations: Most Silver is a byproduct of mining other ores such as lead, zinc, and copper.
• Inventory levels have significantly decreased over recent years.
• Mining infrastructure cannot rapidly increase output.

This situation is becoming a “turning point” that could push Silver prices to new levels.

Comparison: Why Silver Might Be Better Than Gold for Some Investors

Gold/Silver Ratio: A Key Indicator

The Gold/Silver Ratio (GSR) measures how many ounces of Silver are needed to equal one ounce of Gold.

What a high GSR indicates:

During the COVID-19 crisis in (March 2020), investors fled to the safest assets, primarily Gold, causing the GSR to spike to a record 124:1.

When GSR decreases:

In 2011, confidence returned, and investors were willing to take more risks for higher returns, reducing the GSR to 31:1.

Current situation:

The GSR remains high at approximately (84:1), indicating the market has not yet fully priced in the industrial fundamentals. This presents a significant gap.

Market Size and Volatility: Different Dynamics

Gold market: Valued at about 30 trillion USD – large and stable.

Silver market: Valued at about 2.7 trillion USD – smaller market.

This means: when the same amount of money flows into both markets, Silver’s price is more affected.

Volatility: Silver prices tend to fluctuate 2-3 times more than Gold, which is a double-edged sword – during bear markets, Silver declines more sharply, but in bull markets, it can surge faster.

Role in the Financial System: Key Differences

Gold: Held by central banks as reserves; a symbol of stability.

Silver: Does not play a major role in the core financial structure. Its price depends on two factors – partly as a precious metal, partly as an industrial commodity.

This means Silver is more connected to real economic cycles but also benefits from industrial growth factors that Gold does not.

How to Access Silver: Various Options

1. Physical Silver Holdings

Traditional method: buying Silver bars or coins for storage.

Advantages:

• Actual ownership
• No counterparty risk
• High privacy

Disadvantages:

• High initial investment
• Premiums over market price
• Storage and insurance costs
• Low liquidity
• Risks related to purity verification

( 2. Mining Funds and Stocks

Indirect method: investing in funds with Silver mining policies or buying shares of producers.

Examples of funds: Funds focusing on Silver Mining Shares.

Examples of companies: Pan American Silver, Wheaton Precious Metals, Fresnillo, Hecla Mining.

Advantages:

• High liquidity
• Easy trading on stock exchanges
• No storage concerns

Disadvantages:

• Company-specific risks
• Stock prices may not always track Silver prices
• Management and production cost issues

) 3. Futures Market

Futures contracts: TFEX Silver Online Futures.

Details:

• Based on 99.9% purity Silver
• Contract multiplier of 3,000 times the reference price
• Cash settlement

Advantages:

• Low initial capital ###high leverage###
• Profit in both rising and falling markets

Disadvantages:

• High risk
• Complex, suitable for professional investors only
• Contract expiration dates

( 4. CFD Contracts

Contract for Difference: speculative contracts based on price differences.

Method:

• Trading XAGUSD )Silver against US dollar###
• No need to own the physical asset

Advantages:

• Low capital requirement (leverage)
• High flexibility
• High liquidity, easy to open/close positions
• No hidden costs

Disadvantages:

• Leverage risk
• Counterparty risk

Recommended Option: Find reputable trading platforms with clear terms and support for Silver CFD assets.

Summary of 4 Investment Options

Pros and Challenges of Investing in Silver

( Main Advantages

1. High Return Potential: Due to increased volatility and lower valuation relative to Gold/Silver Ratio in favorable market conditions, Silver can deliver significantly higher returns than Gold.

2. Sustainable Industrial Demand: The long-term megatrends of shifting to clean energy, electric vehicles, and digital technologies are irreversible.

3. Affordable Price: Per-ounce prices are many times lower than Gold, making it accessible to retail investors.

4. Inflation Hedge: Has a long history of preserving value.

) Risks and Challenges

1. High Volatility: Price swings can lead to substantial gains or losses.

2. Sensitivity to Economic Cycles: As Silver demand is heavily industrial, economic slowdowns can depress prices.

3. Holding Costs: For physical holdings, storage, insurance, and low liquidity are concerns.

4. No Income Generation: No interest or dividends; returns depend solely on price appreciation.

Conclusion: Silver in the Modern World

Silver is not just a cheaper alternative to Gold but a unique asset with dual roles as a precious metal and an industrial commodity.

For investors seeking:

• Stability: Gold remains the safe haven.
• Better Returns: Silver offers compelling opportunities.

The key facts—structural deficits, growing industrial demand, and high Gold/Silver Ratio—point in the same direction.

Thai investors interested in this market have multiple accessible channels, from physical holdings to CFD trading. Regardless of the method chosen, thorough research and risk management are essential.