Silver (Silver): An asset that has been overshadowed for 4,000 years and has now entered the era of generating real returns?

In the current global market context, silver has stepped out from the shadow of gold to become an asset that analysts and institutional investors are paying more attention to. The reason is not because it is outdated, but because Silver is now an indispensable raw material chosen by modern global technology, and the market is facing a prolonged shortage.

The Industrial Revolution Needs More Silver Than Most Investors Think

Before diving deeper, let’s look beyond the surface to understand what role Silver is playing in today’s world.

The undisputed fact is that Silver is heavily used in microelectronics, EV battery manufacturing, solar panels, and 5G devices. Its superior properties in heat conduction, electrical conductivity, and light reflection mean no other metal can replace it. The shimmering gold? That’s a thing of the past. Silver is a star in its own right.

The World Silver Survey 2025 report from The Silver Institute industry research agency reveals a clear picture: the market has been facing a “structural deficit” (Structural Deficit) for over four years. Industrial demand hit a record high of 680.5 million ounces in 2024, nearly 59% of total demand, while supply has been insufficient due to mining disruptions and depleted inventories.

The simple equation: Inelastic demand + Inelastic supply = Increasing price necessity

4,000 Years of Silver History: From Trade Medium to Future Essential Component

Humans have long recognized the value of Silver since ancient times:

• 3000 BC: Sumerians and Egyptians used silver bars or rings as a medium of exchange.
• 16th century: Silver ore from Spain became the world’s first global currency, crossing oceans and accepted worldwide.
• Until 1857: Silver remained a legally recognized currency in the United States.
• Post-1935: The abolition of the Silver Standard ended its monetary role but opened a new chapter: Silver as an investment asset and industrial raw material.

This chapter is about to close, making way for a new one filled with greater possibilities.

Silver Shortage: Energy Costs, Scarcity, and Timing

A deep analysis of the Silver market cannot be separated from three main factors:

1. Surging Demand
As the world accelerates toward clean energy, EVs, digital, and AI, everything requires efficient Silver. Energy prices, production costs, and urgency: there are no alternatives but Silver.

2. Supply Constraints
The amount of Silver obtained from mining and recycling, as by-products of other commodity production, cannot be increased quickly in the short term.

3. Gold/Silver Ratio Distortion
The GSR (Gold/Silver Ratio) remains at around 84:1 or higher than the historical average. This indicates that Silver is still undervalued relative to the fundamental changes occurring in the industrial market.

The issue: Silver trades with a psychological premium 2-3 times higher than gold, making it riskier but with higher potential returns.

Deep Comparison: Gold vs Silver – Assets from Different Worlds

Why might Silver win in the mid-term game?

Gold is the standard choice for those seeking “stability and decision,” but Silver’s weakness (volatility) has become its strength (opportunity for returns) if mid-level investors can accept the risks.

High Gold/Silver Ratio = Silver is undervalued = a gap for profit-seeking.

4 Investment Channels for Thai Investors to Choose From

1. Physical Silver Ownership (Physical Silver)

Suitable for: Long-term investors wanting real ownership and distrustful of systems.

Where to buy: Leading gold and silver shops such as Ausiris, MTS Gold, Bowins Silver, SNP Gold, mostly in commercial districts.

Advantages:

• Own tangible assets, tangible and real
• No counterparty risk

Disadvantages:

• High initial investment
• Buying/selling spreads (Premium) are quite significant
• Storage and insurance costs

2. Investing via mutual funds and mining stocks

Suitable for: Investors seeking liquidity and diversification.

Examples:

• DAOL-SILVER fund (Global X Silver Miners ETF)
• Global silver mining stocks: Pan American Silver, Wheaton Precious Metals, Fresnillo, Hecla Mining

Advantages:

• High liquidity, traded on stock exchanges
• No need to worry about storage

Disadvantages:

• Company-specific risks (management, production costs, political risks)
• Stock prices may not track Silver prices 100%

3. Futures Trading (Futures)

Suitable for: Professional investors with high experience.

Details: TFEX Silver Online Futures, referencing 99.9% pure Silver, contract multiplier 3,000 times.

Advantages:

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

Disadvantages:

• Very high risk
• Complex, suitable for professionals only

4. CFD Trading (Contract for Difference)

Suitable for: Short- to medium-term speculators, those seeking high flexibility.

Underlying: Symbol XAGUSD (Silver vs. US dollar)

Advantages:

• Low initial capital (Leverage)
• High flexibility, quick opening/closing of positions
• High liquidity, nearly 24-hour trading 5 days a week
• No hidden costs (Storage, insurance)
• Invest from $50

Disadvantages:

• Leverage risk
• Counterparty risk (Choose a reputable broker is very important)

Recommended platform: Reputable CFD brokers with no commission, low spreads, and demo accounts of $50,000 for practice before real trading.

Pros and Risks: Balancing Your Portfolio

Opportunities:

• Higher potential returns than gold (due to volatility)
• Growing industrial demand (for 2-3 decades)
• Lower per-ounce price (more accessible)
• Proven inflation hedge asset

Risks:

• High price volatility (can lead to massive short-term losses)
• Sensitive to economic conditions (over half of demand from industry)
• Physical holdings: storage costs, insurance, security risks
• No interest income (Capital gains only)

Summary: Daily Silver and Preparation

Silver is no longer “the poor man’s gold.” It has become a staple raw material of the modern world, now being valued genuinely for the first time due to the forecasted long-lasting shortage.

For Thai investors interested:

• Decide based on goals (Asset accumulation vs. speculation?)
• Assess acceptable risks (Volatility 2-3 times gold)
• Choose investment channels suitable for your situation (Physical, funds, futures, CFDs)
• If opting for CFDs or futures: practice via demo accounts first, then trade with a clear plan.

This approach is accessible to retail investors; they do not need to wait for major financial institutions. Making Silver market access easier than ever. Just remember: More opportunities = higher risks. Proper preparation is key.