Why is Silver interesting in the current market? Trends and investment opportunities not to be missed

When it comes to precious metals, silver still remains somewhat underrated by many. However, the truth is silver has become a highly promising asset in the current era. The price surge over the past year is not just a coincidence but results from strong fundamental factors.

Timeline: Silver Sets New Records

The silver price has hit multi-year highs, attracting the attention of many global investors. Notably, this increase is not driven by random speculation but by fundamental shifts in the market and the global economy.

The Long History of Silver: From Currency to Modern Asset

Historical Usage

For over 4,000 years, silver has played a vital role in exchange and store of value. Although things have changed, the importance of this metal remains:

• In ancient times, archaeological evidence shows that silver was used as a medium of exchange and a store of wealth since 3,000 BCE, in the form of rings and bars with standard weights.
• The Spanish era in the 16th century marked a significant turning point when silver was minted into coins that became the first globally accepted currency across all continents.
• In the United States, silver was used as legal tender until 1857 and continues to be produced as coins and bars for investment purposes today.

New Role in the Tech Age

If you think silver’s importance is only as a currency, you are mistaken. Silver’s physical properties make it an indispensable material in today’s world:

Unique Physical Properties:

• Superior electrical and thermal conductivity: Silver is the best conductor of electricity and heat, making it a key component in all electronic devices.
• Highest reflectivity: These properties enhance the efficiency of solar panels in converting sunlight into electricity.
• Antimicrobial properties: Silver is widely used in medical applications, from burn wound dressings to surgical tools and water filtration systems.
• Malleability and ease of processing: Suitable for microelectronics requiring small, complex components.

The transition to clean energy, development of electric vehicles, 5G networks, and AI infrastructure all rely heavily on silver.

Current Drivers of Silver Prices

The price change of silver is not random but driven by two layers of factors:

Macroeconomic Factors

Monetary policies and interest rates: The Federal Reserve’s rate cuts in 2025 are a primary driver behind the sharp rise in silver prices.

US dollar index: The inverse relationship between silver prices and the dollar value is well-known. When the dollar weakens, foreign investors can buy silver at lower prices, increasing demand and pushing prices higher.

Inflation and geopolitical uncertainty: Silver is viewed as a hedge against financial collapse and global instability. During times of market fear or uncertainty, safe-haven demand for silver increases.

Fundamental Factors: Supply and Demand

Most importantly, the silver market is facing a severe structural deficit (Structural Deficit).

According to the World Silver Survey 2025 by The Silver Institute, a reputable industry organization, the data paints a clear picture:

Demand Side:

• Industrial demand hit a new record of 680.5 million ounces in 2024.
• The industrial sector accounts for about 59% of total demand.
• Future demand driven by industries: clean energy, electric vehicles, 5G electronics, and AI.

Supply Side:

• Mining output has stagnated.
• By-product supply from other mines (Lead, Zinc, Copper) has decreased.
• Inventory levels have been declining steadily.

The scenario of soaring demand coupled with inflexible supply is what analysts call a “Perfect Storm,” potentially pushing silver prices to new, significant highs.

Silver vs Gold: Who Leads?

Gold/Silver Ratio: The Indicator of Silver’s Allure

The Gold/Silver Ratio (GSR) tells us how many ounces of silver are needed to buy one ounce of gold. This indicator reflects market psychology:

• During crises with maximum fear (March 2020 - COVID-19), GSR soared to 124:1 as investors flocked to the safest assets, gold.
• As confidence returned and investors became risk-tolerant, they shifted toward silver, causing the ratio to shrink (2011 down to 31:1).
• Currently, GSR is around 84:1, still above historical averages, indicating the market has not fully priced in silver’s fundamentals.

( Comparative Features

Key Differences:

• Market Size: Gold is valued at about )trillion, while silver is approximately $2.7 trillion. When capital flows into silver, it tends to have a more pronounced impact.
• Volatility: Silver is 2-3 times more volatile than gold. During bear markets (Bear), it declines more sharply; in bull markets ###Bull Market$30 , it rises faster and higher.
• Economic Role: Gold is a traditional safe-haven asset, whereas silver is a “hybrid” between a precious metal and an industrial commodity.
• Economic Correlation: Central banks hold gold, but silver’s correlation with economic cycles is stronger.

4 Ways for Thai Investors to Start Investing in Silver

( 1. Physical Silver: The Classic Approach

Holding tangible silver assets like silver bars )Bars( or coins )Coins###.

Available in Thailand: Reputable gold shops such as Ausiris, MTS Gold (Mae Thong Sook), Bowins Silver, and SNP Gold.

Advantages:

• Ownership of real assets
• No counterparty risk
• High privacy

Disadvantages:

• High initial investment
• Premiums on buy/sell prices (Premium)
• Storage and insurance costs
• Lower liquidity compared to other methods

( 2. Indirect Investment via Mining Funds and Stocks

Buying units of funds or shares of silver mining companies.

Examples: DAOL-SILVER fund investing in Global X Silver Miners ETF, or shares of leading silver producers like Pan American Silver, Wheaton Precious Metals, Fresnillo.

Advantages:

• High liquidity, easy trading on stock exchanges
• No need for physical storage
• Benefits from company growth

Disadvantages:

• Company-specific risks
• Price may not perfectly track global silver prices

) 3. Futures Contracts: For Experienced Investors

Trading silver futures contracts via TFEX.

Advantages:

• Low initial capital (Leverage)
• Profit in both rising and falling markets

Disadvantages:

• Very high risk
• Complex, suitable only for seasoned traders

4. CFD ###Contract for Difference(: Flexible and Convenient

Trading the price difference of silver through broker platforms.

What is CFD?: A contract between investors and brokers to speculate on price movements without owning the actual asset.

Advantages:

• Low capital requirement )Leverage###
• High flexibility, can buy/sell in both directions
• High liquidity, quick opening/closing of positions 24/5
• No hidden costs (No storage or insurance needed)

Disadvantages:

• Leverage risk
• Counterparty risk (Choose reputable brokers)

For Thai investors: Platforms like Mitrade are popular, offering:

• No commission, low spreads
• Free demo account with $50,000 virtual funds
• Bonuses for new clients (- Minimum deposit only )

Strengths and Challenges

( Strengths

Higher potential returns: The volatility advantage in a bull market.

Growing industrial demand: Mega-trends )clean energy, digital$100 ensure long-term silver demand.

Accessible pricing: Low per-ounce prices make silver reachable for retail investors.

Inflation hedge: A 4,000-year history of value preservation.

$50 Challenges

High volatility: Prices fluctuate more intensely than gold.

Economic sensitivity: About 60% of demand is industrial; economic slowdown could depress prices.

Hidden costs: Physical storage, insurance, theft risks.

No income yield: Returns come solely from price differences.

Summary: Is Silver Worth It?

Silver is not suitable for everyone, but for investors with clear goals and outlooks, it can be a valuable opportunity.

• If you prefer stability, gold remains the safer choice.
• If you accept higher risk for greater returns, the current fundamentals of silver present significant opportunities.

Having the right tools is crucial. Reliable trading platforms can help Thai investors access the global silver market efficiently.

Ultimately, investment decisions should be made through informed, intelligent analysis—not following trends blindly.