Why Silver Might Become a Better Investment Than Gold in the Current Market

Gold prices have been continuously rising over the past year, prompting many professional investors to look for value in assets that most people tend to overlook—Silver (Silver)—which may have the potential to generate returns ahead of gold in the coming future.

The History of Silver: The Original Owner of the World

Before the era of central banks and digital currencies, humans have used Silver as a medium of exchange for over 4,000 years.

• Since 3000 BC, standard-weight silver bars and rings have served as currency.
• In the 16th century, Spain imported silver to mint coins, which became the world’s first global currency accepted across all continents.
• The Silver Standard system remained in use until 1935, and in the United States, silver was legally recognized as legal tender until 1857.

Although the official monetary role has faded, Silver continues to be produced for investment purposes to this day.

Silver in the Technology Era: Why It Matters More Than Ever

What makes Silver important again are its unique properties that gold does not possess:

• Best conductor of electricity and heat: Making Silver essential in all electronic devices.
• Highest reflectivity: Improving the efficiency of solar panels in converting light into electricity.
• Antimicrobial properties: Used in wound dressings, medical tools, and water filtration systems.
• Ductility and formability: Necessary for microelectronics requiring precision.

For the transition to clean energy, electric vehicles, 5G networks, and AI technologies—all heavily reliant on Silver.

Factors Driving Silver Prices Today

( Macroeconomic Factors

Interest rate cuts: When the Fed lowers rates in 2025, investors shift toward assets not dependent on interest rates, causing Silver prices to surge rapidly.

Weakening dollar: History shows that Silver and the dollar tend to move inversely. When the dollar weakens, global investors can buy Silver at lower prices, boosting demand.

Economic uncertainty: Like gold, Silver is viewed as a safe haven during times of market fear and instability.

) Supply and Demand Issues

The World Silver Survey 2025 from The Silver Institute indicates that the market is facing a “Structural Deficit” ###Structural Deficit###.

Global demand exceeds the combined production and recycling capacity, a phenomenon ongoing for four consecutive years.

Record industrial demand: Industrial consumption of Silver reached 680.5 million ounces in 2024, accounting for nearly 59% of total demand, especially from solar energy, electric vehicles, 5G electronics, and AI.

Supply cannot keep up: Despite soaring demand, production faces structural issues, declining by-products, and inventory shortages.

This situation is called a “Perfect Storm,” with many analysts expecting it to push Silver prices significantly higher in the future.

Gold/Silver Ratio: The Indicator That Tells the Real Story

Gold/Silver Ratio (GSR) indicates how many ounces of Silver are needed to buy 1 ounce of gold.

• Currently, the GSR is around 84:1, higher than the historical average.
• During the COVID-19 crisis (March 2020), the ratio soared to 124:1 as investors flocked to gold as a safe haven.
• In the 2011 bull market, the ratio dropped to 31:1 as investors regained confidence and turned to Silver for higher returns.

The reality is that the market has not fully priced in Silver’s industrial fundamentals, opening opportunities for investors seeking value.

Comparing Gold and Silver: Which Is More Attractive?

( Fundamental Differences

( Meaning of the Differences

The Silver market is much smaller than gold, so when money flows in, Silver prices respond more strongly. For this reason, Silver is more volatile by 2-3 times.

In a bear market, Silver may fall more sharply, but in a bull market, it tends to surge faster and higher than gold.

Gold acts as a safe haven asset and central bank reserve, while Silver is a hybrid of a precious metal and an industrial raw material. Central banks do not hold Silver as reserves, making its price more closely linked to economic cycles.

How Can You Invest in Silver?

) 1. Physical Silver

The traditional method: buying silver bars or coins for ownership.

Advantages: Owns real assets, no counterparty risk.

Disadvantages: High capital requirement, premium over spot price, storage and insurance costs, low liquidity.

In Thailand, you can purchase from leading gold shops in trading districts. However, always verify the credibility of the seller.

2. Investing via Funds and Mining Stocks

Indirect methods through various investment tools.

Mutual Funds: Investing in funds that allocate to foreign silver mining companies.

Mining Stocks: Investors with access to international stock markets can buy shares of major mining companies.

Advantages: High liquidity, easy trading, no need for storage.

Disadvantages: Company-specific risks, may not track Silver price 100%.

3. Futures Market (Futures)

For professional investors familiar with derivatives markets.

TFEX Silver Online Futures, referencing the global market price of 99.9% pure Silver.

Advantages: Lower initial capital due to leverage, profit from both rising and falling markets.

Disadvantages: Very high risk, complex, suitable for experienced traders.

4. Trading via CFDs ###Contract for Difference(

Popular method for short- and medium-term speculation.

CFD is a contract that references the price difference of Silver )XAGUSD### without owning the physical metal.

Advantages:

• Very low initial investment
• High flexibility, can open long or short positions
• High liquidity, tradable almost 24/5
• No storage or insurance costs

Disadvantages: Leverage risk, requires choosing a reliable broker.

Summary of 4 Investment Methods

Opportunities and Risks of Investing in Silver

( Opportunities

High return potential: Greater volatility and lower price relative to gold based on GSR give Silver a clear chance to generate higher percentage gains.

Long-term industrial demand: The mega-trends of clean energy, electric vehicles, and digital technology will sustain demand for Silver for many years.

Accessible pricing: With prices per ounce much lower than gold, retail investors find it easier to participate.

Inflation hedge asset: Silver’s long history as a safe haven helps protect wealth from currency devaluation.

) Risks to Watch

High volatility: While offering huge returns, it can also cause significant short-term losses. Silver investors must accept higher risks than gold.

Economic sensitivity: Over half of Silver demand comes from industry, so its price is more influenced by economic cycles. Recessions may push prices down.

Holding costs: Physical Silver requires storage, insurance, and exposes to theft risk.

No dividends or interest: Silver does not pay yields; returns come solely from price changes.

Conclusion

Silver (Silver) is no longer a neglected commodity but a vital asset in the modern global economy.

For Thai investors seeking to diversify their portfolios, Silver offers an additional compelling option, depending on your goals and risk appetite.

Regardless of the method chosen, thorough research is essential before making decisions. Remember, all investments carry risks, and they should align with your financial situation and personal objectives.

In a world driven by clean energy and digital technology, Silver may no longer just be a safe haven but a symbol of future industries.