Silver (Silver): From a commodity to a vital investment tool of the modern era

4 Investment Channels in Silver for Thai Investors

Before understanding the potential of silver, it’s better to start by choosing the investment method that suits you best.

1. Physical Investment: Traditional method with high confidence

Buying genuine silver bars or coins is a way for investors to own real assets without worrying about counterparty risks.

In Thailand, there are many trusted operators such as Ausiris, MTS Gold (Mae Thong Sook), Bowins Silver, and SNP Gold, mostly located in main commercial districts.

Advantages: Owns real assets, high privacy, no counterparty risk.

Disadvantages: Requires a large initial investment, buy-sell spreads (Premium), storage and insurance costs, low liquidity.

2. CFD Trading: Flexible, low cost, suitable for retail investors

CFD (Contract for Difference) is the easiest trading method for Thai investors today, allowing speculation on the price difference of Silver (XAGUSD) without owning the actual asset.

Convenience:

• Low initial investment (even $50) due to leverage
• Can trade both long (Long) and short (Short) positions
• No hidden costs for storage and insurance
• High liquidity, quick opening and closing of positions 24/5

Disadvantages: Risks from leverage and counterparty, choose a reliable broker.

For Thai investors, Mitrade is a leading choice with safety, no commission, a free demo account with $50,000, and bonuses for new members $100 .

3. Funds and Mining Stocks: Access growth through the stock market

This method offers opportunities to invest in the silver production industry via mutual funds or stocks of large mining companies.

Examples:

• DAOL-SILVER fund investing in Global X Silver Miners ETF
• Stocks like Pan American Silver, Wheaton Precious Metals, Fresnillo

Advantages: High liquidity, traded on stock exchanges, no storage needed.

Disadvantages: Company-specific risks, may not fully reflect the actual Silver price 100%.

4. Futures: For professional investors

Thailand’s TFEX offers online Silver futures contracts based on 99.9% silver prices in the global market.

Advantages: High leverage, profit in both directions.

Disadvantages: Very high risk and complex, expiration dates, suitable only for experienced traders.

Why is Silver Becoming a Global Investment Interest?

Long history and modern market conditions make silver an asset not to be overlooked.

Main roles: Money or industrial material?

Humans have used silver for over 4,000 years as a medium of exchange, from Babylonian times to the Spanish era when silver bars were made into coins, becoming the first widely accepted currency across continents. It was still used as legal tender in the US until 1857.

Although its role as official currency ended, silver continues to be produced for investment purposes.

Why do industrial inventions in the digital age require more silver?

The unique properties of silver make it an unavoidable raw material, even more than gold:

• Superior electrical and thermal conductivity: essential in all electronic devices
• Maximum reflectivity in metals: enhances solar panel efficiency
• Antibacterial properties: used in burn dressings, surgical tools, water filtration systems
• Flexibility and easy processing: for microelectronics

These demands are increasing due to: clean energy, electric vehicles, 5G networks, and AI infrastructure inevitably rely on silver.

Today’s Market Situation: “Structural Deficit” at a Crisis Point

The World Silver Survey 2025 by The Silver Institute reveals key data: the silver market faces a persistent structural deficit for the 4th consecutive year.

In simple terms: The world needs more silver than can be produced and recycled combined.

Demand Surges

Industrial sector consumed 680.5 million ounces in 2024, nearly 59% of total demand. This is the highest in history.

Future industry drivers (clean energy, EVs, 5G, AI) are the main growth engines.

Supply Fails to Keep Up

Production faces issues: mining output stalls, by-products from other mining activities (lead, zinc, copper) decrease, inventories decline.

This is a perfect storm: growing demand meets stagnant, inflexible supply.

This imbalance is not temporary but is becoming the New Normal in the market, which many analysts believe will push silver prices significantly higher.

Gold/Silver Ratio: A Number Indicating Opportunities

Gold/Silver Ratio (GSR) measures how many ounces of silver are needed to buy one ounce of gold.

This number reflects market psychology:

• All-time high crisis: March 2020 (COVID crisis), GSR soared to 124:1 as investors flocked to the safest asset (gold)
• In bull markets: 2011, ratio shrank to 31:1 as investors turned to silver for higher returns
• Current situation: around 84:1, above the historical average

Implication: The market has not fully priced in silver’s industrial fundamentals. This gap may present investment opportunities.

Comparison: Gold vs Silver

Size and Volatility

Implication: When the same amount of capital flows in, smaller silver markets will see larger price swings.

High volatility is a double-edged sword: in bear markets, silver drops sharply; in bull markets, it can surge faster and higher.

$30 Different Roles

• Gold: Safe haven asset, central banks hold reserves
• Silver: Hybrid of precious metal and industrial commodity, linked to economic cycles

( Is silver an opportunity?

For risk-averse investors, gold remains the standard.

But for those willing to accept higher risk for greater returns, current fundamentals suggest silver is a very attractive investment option: lower prices )high GSR###, inflexible supply, surging industrial demand.

Price Drivers of Silver: Macro vs Fundamentals

Silver prices are not random; they are driven by complex factors.

Macro: The Big Picture

Monetary policy: The relationship between interest rates and asset prices is clear. The Fed’s rate cuts in 2025 are a key accelerating factor.

Dollar index: Generally, silver moves inversely to the dollar. When the dollar weakens, silver becomes more expensive in other currencies, boosting demand.

Inflation and uncertainty: Silver is seen as a hedge against inflation and geopolitical-economic uncertainties.

( Fundamentals: Demand-Supply Dynamics

This is the core driver of current silver prices.

Demand: 680.5 million ounces in 2024 )record high###, with nearly 59% from industry.

Supply: Production stalls, inventories decline, by-products from other mining activities decrease.

Result: Ongoing deficit, which analysts see as a Perfect Storm likely to push prices to new highs.

Pros and Cons of Investing in Silver

Opportunities and Advantages

1. High return potential: High volatility + lower value than gold = higher percentage gains.

2. Strong industrial demand: Clean energy, digital, EVs are long-term megatrends that won’t reverse.

3. Affordable price: Per-ounce price is many times lower than gold, making it accessible to retail investors.

4. Inflation hedge: Long history as a store of value.

( Risks and Disadvantages

1. High volatility: Double-edged sword, can generate huge gains but also steep losses.

2. Sensitive to economic cycles: Over half demand from industry; recession could pressure prices.

3. Holding costs: Storage, insurance, theft risks.

4. No passive income: No dividends or interest; returns come only from price differences.

Summary

Silver is no longer just the “poor man’s gold,” but a vital asset for the modern economy.

For investors seeking stability, gold remains the standard choice. But for those willing to accept higher risk for higher returns, current fundamentals indicate that silver offers a significant opportunity.

The opportunity belongs to those ready to act early, equipped with the right tools and deep market understanding.

Investment risks exist across all channels; please consider carefully.