Silver ore: An often-overlooked income-generating opportunity compared to gold

This year, the Silver market is capturing the attention of investors worldwide. Not for no reason, but because of solid and clear fundamental factors. If you still think that Silver is just a “liquid scrap” of a valuable asset, we have information that might change your perspective.

What is Silver and Why Is It Important Today

History tells us that Silver is not new. Humans have used Silver as a medium of exchange for over four thousand years, dating back to ancient civilizations. Around 3000 BC, Silver was used as currency in the form of rings and standardized bars. In the 16th century, Spain produced Silver coins, which became the first globally accepted currency until 1857.

But after its official monetary role diminished, Silver found a new identity again in the technological era.

Why “Silver Makes Gold Look Ordinary”

The truth is, Silver has physical properties unmatched by any other metal, even gold. When it comes to electrical conductivity, Silver outperforms others. Its price per ounce is lower, making it suitable for use in common electronic devices.

Additionally, Silver is used in:

• Solar panels for its high reflectivity
• Medical devices due to its antibacterial properties
• 5G and AI equipment because of its flexibility and processability
• Electric vehicles, driven by global clean energy initiatives

These factors are driving industrial demand to record highs, reaching nearly 680.5 million ounces in 2024, accounting for over 59% of total demand.

The Problem: Supply Can’t Keep Up

The World Silver Survey 2025 by The Silver Institute reveals a four-year ongoing situation of “structural deficit.” The Silver market is experiencing shortages. Global demand is increasing, especially in construction, but supply—both from mining and recycling—cannot meet this demand.

This is due to declining production and Silver often being a byproduct of mining other metals like lead, zinc, and copper. When these mines face disruptions, Silver production drops accordingly.

This scenario is what analysts call a “Perfect Storm” for the market, and it appears to be the “New Normal” for Silver going forward.

Gold vs Silver: The Numbers Tell the Truth

Market Size: The gold market is valued at about 30 trillion dollars, compared to Silver at 2.7 trillion dollars. The smaller market size means that the same amount of capital can have a larger impact on Silver prices.

Volatility: Silver is 2-3 times more volatile than gold, meaning during bullish markets, Silver tends to rise faster and higher.

Current Gold/Silver Ratio: Around 84:1. Compared to historical averages, this is high, indicating the market may not fully price Silver’s industrial fundamentals.

Role in Portfolios: Central banks hold gold as reserves, but not Silver. This makes Silver a “hybrid” asset, linked to economic cycles and megatrends in technology simultaneously.

4 Ways for Thai Investors to Buy Silver

1. Purchase Physical Silver Bars

The most traditional option: buy Silver Bars (Silver Bars) or Silver Coins (Silver Coins) from major dealers in Thailand such as Ausiris, MTS Gold, Bowins Silver, or SNP Gold.

Advantages: Actual ownership, tangible, no counterparty risk. Disadvantages: High capital requirement, premiums above global market prices, storage and insurance costs, low liquidity.

( 2. Invest via Mining Funds or Stocks

For convenience, you can buy units of mutual funds like DAOL-SILVER, which invests in Global X Silver Miners ETF, or buy shares of major silver mining companies such as Pan American Silver, Wheaton Precious Metals, or Fresnillo.

Advantages: High liquidity, easy trading on stock exchanges, no storage needed. Disadvantages: Management risks, production costs, may not always track Silver prices precisely.

) 3. Trade Futures Contracts via TFEX

For experienced traders, trading TFEX Silver Online Futures based on 99.9% purity Silver prices on the global market.

Advantages: Low initial capital due to leverage, profit in both rising and falling markets. Disadvantages: Very high risk, complex, suitable only for professional investors.

4. Trade Silver CFDs via Brokers

The most popular method among Thai investors today, offering flexibility and low capital requirements. You can trade XAGUSD ###Silver/USD### through reputable broker platforms.

Advantages:

• Low initial investment due to leverage
• Profit in both bullish and bearish markets
• No hidden costs like storage or insurance
• High liquidity, easy to open/close positions, markets open 24/5

Disadvantages: High leverage risk, must choose trustworthy brokers.

For convenience, Thai investors might try Mitrade, which offers:

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

Risks and Opportunities to Know

Main Opportunities:

1. High return potential due to volatility
2. Continued rising industrial demand
3. Relatively accessible price compared to gold
4. Inflation hedge asset

Main Risks:

1. High volatility, potential for significant losses
2. Sensitive to economic growth rates
3. Physical investment involves storage costs and theft risk
4. No interest income; profits come solely from price differences

Summary

Silver has transformed from merely “poor man’s gold” to an asset vital to the modern global economy. With surging industrial demand, market deficits, and a high Gold/Silver Ratio, Silver could present lucrative opportunities for your portfolio.

The key is choosing an investment method that matches your risk level and objectives, whether physical storage, mining stocks, or CFD trading. Always make decisions carefully and with a clear risk management plan.