1-Kilogram Gold Bar and Investment Opportunities Many People Overlook: Are the Returns Truly Worth It?

Anyone who still thinks Silver is just a secondary metal to gold needs to reconsider, as the global market is sending clear signals that silver ore is at a critical turning point. This is driven by factors such as rapid industrial growth and a persistent deficit that has continued for 4 consecutive years.

Why Silver is an Asset Not to Be Overlooked

History tells us that Silver is not a new invention. Archaeological evidence indicates that humans have used silver as a medium of exchange for over 4,000 years, dating back to a time before paper or digital money. However, it is not history that drives Silver’s price today—not the ancient past, but the modern demand. Yes, programmers are involved.

The true drivers come from the needs of the modern world. Silver possesses qualities that gold does not:

• Superior electrical and thermal conductivity, forming the backbone of all modern electronic devices
• Maximum reflectivity, enhancing the efficiency of solar panels
• Antibacterial properties, widely used in medical applications and surgical tools
• Flexibility and ease of processing, essential for microelectronics

All these factors are significant signals indicating that Silver is not merely a precious metal but an industrial commodity vital for driving future technologies—from clean energy, electric vehicles, 5G networks, to AI.

Issue: Rising Demand, Insufficient Supply

The World Silver Survey 2025 report from The Silver Institute reveals a concerning picture: the Silver market is experiencing a “structural deficit”(Structural Deficit), meaning the world needs more Silver than what is produced and recycled combined.

Key data include:

• Industrial demand hit a record high of 680.5 million ounces in 2024 (accounting for 59% of total demand)
• Supply cannot keep up due to production limitations, with most Silver coming as a byproduct of other mining activities

This deficit is not temporary but is becoming the market’s normal state.

Gold vs Silver: Who Will Win in the Next Bull Run

Comparing the two metals should not be about determining which is better, as they serve different roles.

Market size: Gold has a market value of approximately $30 trillion, while Silver is only about $2.7 trillion. This difference means that when money flows into Silver, it can impact prices 2-3 times more than gold.

Gold/Silver Ratio (GSR): This indicator shows how many ounces of Silver are needed to buy one ounce of gold. Currently, the GSR is around 84:1, higher than the historical average. This suggests that Silver still has a “margin” that has not yet been fully priced in based on fundamental factors.

Central Bank Role: Gold is held as reserves by central banks worldwide, whereas Silver does not have such a role. This makes Silver’s price more correlated with economic cycles but also offers higher potential returns during bull markets.

4 Ways for Thais to Start Investing in Silver

1. Physical Bars and Coins

The most straightforward and tangible method is to buy 1-kilogram silver bars or silver coins for actual ownership.

In Thailand, reputable dealers include Ausiris, MTS Gold, Bowins Silver, and SNP Gold.

Advantages: Own real assets, tangible, no counterparty risk
Disadvantages: Requires a relatively high initial investment, includes a premium(Premium), storage and insurance costs, low liquidity

2. Funds and Mining Stocks

For those seeking high liquidity, mutual funds like DAOL-SILVER, which invests in the Global X Silver Miners ETF, are good options. Alternatively, buy mining stocks directly, such as Pan American Silver, Wheaton Precious Metals, Fresnillo.

Advantages: Easy to trade on stock exchanges, no storage needed
Disadvantages: Company-specific risks, prices may not always align with global Silver prices

3. Futures (TFEX Silver Online Futures)

For experienced investors, TFEX offers Silver futures contracts with a contract multiplier of 3,000 times the reference price.

Advantages: Low initial capital (High leverage), profit in both rising and falling markets
Disadvantages: Very high risk, suitable only for professionals

4. CFD – The Most Flexible Short- to Mid-term Trading Path

Trading CFDs (Contract for Difference) via trusted platforms like Mitrade has become a popular alternative.

Why consider CFDs:

• Low capital requirement: No need for large funds like owning actual silver or high commissions
• High flexibility: Trade Silver (XAGUSD) with buy (Long) and sell (Short) positions
• Maximum liquidity: Easy to open and close positions almost 24 hours a day, 5 days a week, aligned with global market prices
• No hidden costs: No worries about storage, insurance, or purity checks

Mitrade offers:

• Zero commission, low spreads
• Free virtual $50,000 for practice trading before real money
• **Bonuses for new customers $100 dollars$50 **
• Minimum deposit ###only###

Pros and Cons of Investing in Silver You Should Know

Market Opportunities

1. High return potential: Greater volatility than gold allows Silver to generate significant gains during bull markets
2. Stable long-term demand: Industrial and technological demand will persist for years
3. Accessible pricing: Lower per-ounce price makes it easier for retail investors to participate
4. Inflation hedge: Long-standing store of value asset

Risks to be aware of

1. High volatility: Short-term speculation can lead to severe losses
2. Economic sensitivity: Economic slowdown reduces industrial demand
3. No yield or dividends: Returns only come from price appreciation

Summary: What Is Silver Really?

Silver ore today is not a hidden asset but an opportunity many still overlook. With strong fundamentals, an undervalued price margin, and potential for high returns, it remains an asset that few trust.

For investors considering entering the Silver market, the first step is choosing an investment channel suited to their situation—whether holding physical 1-kilogram bars or coins, or trading via flexible online platforms.

Timing your investment decision could be a pivotal move that significantly transforms your portfolio.