Silver (Silver) is becoming a golden opportunity for investors. Can it truly generate higher returns than gold?

Over the past period, the price of Silver has surged and adjusted in a way that attracts the attention of investors worldwide. This phenomenon did not happen by chance but is the result of structural factors that are profoundly changing the global market. Today, we will analyze why Silver deserves the attention of investors and whether silver bars can be a key tool in growing your investment portfolio.

Current Silver Price: Key Indicators to Watch

The price of silver in the global market has changed significantly over the past few years, reflecting shifts in demand and market fundamentals. Monitoring Silver prices is essential for making informed investment decisions.

The Silver market is more volatile than gold, which is important for both high-risk investors and those seeking protection. This volatility creates opportunities for market-savvy participants.

The Long History of Silver: More Than Just a Commodity

Virtual Silver (Silver) has played a vital role in human history for over 4,000 years, with humans using bars and ingots for exchange and wealth storage.

Development Timeline:

Since 3000 BC, standardization of Silver in rings and ingots with fixed weights was used as a medium of exchange. In the 16th century, Spain melted silver ore into coins, which became the first widely accepted currency worldwide. These Spanish silver coins remained legal tender in the United States for a long time afterward.

Although the official role of Silver as currency ended when the world abandoned the Silver standard in 1935, its importance persists. Today, silver bars are still produced and stored as valuable assets.

Physical Properties of Silver: Why It’s an Irreplaceable Metal

What makes Silver different from gold and other precious metals are its unique physical properties, which cannot be substituted.

Key properties of Silver include:

First, Silver is the best conductor of electricity and heat in the world, making it an essential component in electronic devices. It has the highest reflectivity among all metals. This property enhances the efficiency of solar panels and clean energy technologies.

Second, Silver has antibacterial properties, making it widely used in medical applications—from special wound dressings to medical instruments and water filtration systems.

Third, Silver’s flexibility and formability make it crucial for microelectronics and manufacturing small, complex parts.

These factors are driven by the transition to clean energy, electric vehicle development, 5G deployment, and AI demand, which Silver cannot be replaced.

What Is Happening in the Silver Market?

Data from the World Silver Survey 2025 reveals a clear picture: there is a significant imbalance between demand and supply. The market is experiencing a severe “structural deficit.”

Simply put, the world needs more Silver than what is produced and recycled combined. This situation has persisted for four years.

Two key factors:

Unprecedented demand: Industrial demand hit a new high of 680.5 million ounces in 2024, accounting for 59% of total demand. This demand comes from solar energy, electric vehicles, 5G electronics, and AI technologies.

Supply cannot keep up: While demand is soaring, supply faces numerous obstacles—from inflexible production, by-products from other mines, to declining inventories.

The convergence of rising demand and limited supply exerts pressure on prices, which many see as a potential structural market turning point.

What Factors Drive Silver Prices?

Silver prices are not random; they are controlled by major factors.

Macroeconomic factors:

Monetary policy and interest rates are closely linked to asset prices. The Fed’s expected rate cuts in 2025 are seen as a catalyst for higher Silver prices.

The US dollar has an inverse relationship with Silver. When the dollar weakens, foreign investors can buy Silver at lower prices, boosting demand.

Inflation and economic uncertainty lead investors to view Silver as a safe-haven asset.

Fundamental factors:

The Silver market is driven by the balance between industrial demand and supply. The evident structural deficit is the main driver.

Comparing Gold and Silver: Key Differences

Investing in gold and Silver has significant differences affecting investor choices.

Gold/Silver Ratio indicator:

This ratio indicates how many ounces of Silver are needed to equal one ounce of gold. It reflects market sentiment.

During times of extreme fear (such as the COVID-19 crisis in March 2020), investors flocked to gold for safety, pushing the ratio to 124:1. Conversely, when confidence returned, investors turned to Silver for higher returns, with the ratio dropping to 31:1 in 2011.

Currently, the ratio is around 84:1, above the historical average, suggesting the market may not fully price Silver considering fundamental factors.

Market size:

The gold market is valued at approximately $30 trillion, vastly larger than Silver’s $2.7 trillion. The smaller size means capital inflows have a greater impact on Silver prices than on gold.

Volatility:

Due to its smaller market size, Silver is 2-3 times more volatile than gold. In a bear market, prices can fall sharply, but in a bull market, Silver can surge faster.

Role:

Gold acts as a safe asset and central bank reserve, while Silver is a hybrid asset—both a precious metal and an industrial commodity. Central banks do not hold Silver, and its price closely correlates with economic cycles.

Opportunities to Start Investing in Silver: Five Options

For those looking to capitalize on Silver opportunities, several channels are available.

Physical Silver Investment:

The traditional method involves buying Silver bars (Silver Bars) or coins (Silver Coins). Advantages include ownership of real assets, no counterparty risk. Disadvantages include high initial investment, storage and insurance costs, and low liquidity.

Funds and Mining Stocks:

Purchasing units of funds focused on Silver mining companies or major producers. Advantages include high liquidity and no need for self-storage. Disadvantages include company-specific risks and potential price divergence from Silver.

Futures Market:

(Silver Futures) contracts are available on TFEX for Thai investors. Advantages include low initial capital (Leverage). Disadvantages are high risk, complexity, suitable only for professional investors.

CFD Trading:

A popular method among retail investors, speculating on price differences (XAGUSD). Advantages include low capital, high flexibility, good liquidity, no hidden costs, and profit potential in both rising and falling markets. Disadvantages include leverage and counterparty risks.

Key to Choosing:

Long-term investors seeking stability may prefer physical Silver. Those wanting flexibility and liquidity may choose CFDs or stocks. Professionals often prefer futures.

Pros and Cons: Making an Informed Decision

Advantages:

Higher potential returns due to volatility and undervaluation. Silver can outperform gold in bull markets.

Long-term demand driven by clean energy and digital transformation creates a strong foundation for Silver’s future.

Affordable per-ounce price allows diversification.

Long history of value preservation makes Silver a hedge against inflation.

Disadvantages to watch out for:

High volatility can lead to deep short-term losses.

Sensitivity to economic cycles due to high industrial demand; economic slowdown may depress prices.

Storage and insurance costs for physical holdings.

No lifetime income; returns depend solely on price differences.

Conclusion: Silver in Your Portfolio

Silver (Silver) is no longer just in the shadow of gold. In an era of technological and energy transformation, Silver has become a significant asset.

While gold remains the primary choice for stability, those willing to accept higher risks for greater returns should consider Silver. Current fundamentals—low relative price, inflexible supply, and growing demand—make Silver a highly compelling opportunity.

Having the right tools and knowledge is crucial to start. Whatever channel you choose, ensure you understand the risks, have a clear investment plan, and diversify appropriately.