Silver (Silver) - A Asset the World Truly Needs. Why is the Price of Silver Soaring?

Over the past period, Silver prices have not only hit new records but also become a global investor trend as more people recognize its true potential. Today, we will answer an important question: Why is Silver more interesting than we thought, and how can Thai investors access this opportunity effectively?

What is Silver and Why Is It Important in This Era?

Before paper money dominated the world, Silver served as a medium of exchange and a store of wealth for over four thousand years. Historical evidence clearly shows that silver metal is not just a commodity but a symbol of value.

• In ancient times, Silver was used as currency, especially in the form of rings or bars with standard weights, dating back over three thousand years.
• In early Europe, when Spain exported large amounts of Silver, it became the first currency accepted across all continents.
• Although the official use of Silver as currency ended around (1935), its use for investment continues to this day.

Why is Silver an “irreplaceable” metal?

In the age of technology, Silver has proven that it possesses properties that gold and other metals lack, playing a crucial role in shaping the future of the world.

• Conductor of electricity and heat: No metal surpasses Silver in electrical and thermal conductivity, making it an indispensable component in all electronic devices.
• Reflective properties: This special trait enhances the efficiency of Solar Cells in converting sunlight into electricity.
• Natural antimicrobial agent: Widely used in health industries—from bandages and medical devices to water treatment systems.
• Structural flexibility: Makes Silver suitable for complex microelectronics assembly requiring detailed precision.

These factors are the main drivers behind the continuous rise of Silver prices today, especially as the world shifts toward clean energy, electric vehicles, 5G networks, and AI infrastructure.

What are the Drivers Behind Silver Price Changes?

The price of Silver is not just a random number but results from complex factors at both global economic and market levels.

Macroeconomic changes

• Interest rate policies: This relationship is very clear. When central banks (such as the Fed) cut interest rates, Silver tends to surge. In 2025, Fed rate cuts are a key catalyst.
• Dollar purchasing power: Silver movements often oppose the US dollar. When the dollar weakens, foreign investors can buy Silver at lower prices, increasing demand.
• Inflation and uncertainty: During unstable economic times, Silver is viewed as a hedge against currency devaluation and a safe haven in turbulent periods.

Supply and demand balance

According to the World Silver Survey 2025 by The Silver Institute, the Silver market is experiencing a true “structural deficit” (Deficit), not just temporary.

Demand soaring

• Industrial demand hit a record 680.5 million ounces in 2024, accounting for about 59% of total demand.
• Demand from rapidly expanding sectors: Solar Energy, Electric Vehicles, 5G, Artificial Intelligence.

Supply lagging behind

• Rising demand but Silver supply cannot keep pace.
• Structural issues: production disruptions, Silver mined as by-products of other metals like (Lead, Zinc, Copper), stockpiles decreasing.
• This creates a “Perfect Storm” that analysts believe will push Silver prices to unprecedented levels.

Gold vs Silver: Key Differences Investors Should Know

Both gold and Silver are precious metals, but their roles and characteristics differ significantly.

What does the Gold/Silver Ratio tell us?

The “Gold/Silver Ratio” (GSR) measures whether Silver is expensive or cheap relative to Gold, indicating how many ounces of Silver are needed to buy 1 ounce of Gold.

• During crises, such as March 2020 during COVID-19 (, this ratio soared to 124:1 as investors flocked to Gold for safety and liquidity.
• When investor confidence returns, the ratio shrinks. For example, in 2011, it dropped to 31:1 as investors became more daring and sought Silver for better returns.
• Currently, the ratio remains high at around 84:1, indicating the market has not fully valued Silver’s industrial potential, which could be an opportunity for investors.

) Market size, volatility, and roles differ

• Gold market is much larger: approximately $30 trillion, compared to Silver at $2.7 trillion. The smaller market means capital flows can impact prices more significantly.
• Volatility: Silver is 2-3 times more volatile than Gold. This duality means Silver can fall sharply in downturns but also rise faster and higher in bullish markets.
• Roles: Gold is a “traditional” safe-haven asset held by central banks. Silver is a hybrid—both a precious metal and an industrial commodity. Central banks hold little Silver, but its value correlates with economic cycles and real industrial demand.

Is Silver a Good Investment?

For those seeking maximum safety, gold remains the primary choice. But for investors willing to accept higher risks for potentially higher returns, Silver offers an attractive proposition.

• Silver price is lower than Gold in terms of ratio.
• Industrial demand is expanding strongly.
• Inflexible supply creates upward pressure on prices.

These factors make Silver a compelling growth investment.

How to Start Investing in Silver for Thai Investors

Investors seeing opportunities in Silver have several options, each with pros and cons.

( Option 1: Physical Silver Purchase

The traditional method—buying bars or coins of Silver for storage.

Trusted sellers in Thailand include Ausiris, MTS Gold )แม่ทองสุก###, Bowins Silver, SNP Gold.

Advantages

• Actual ownership of assets
• No counterparty risk
• High privacy

Disadvantages

• High initial capital required
• Premiums on buy/sell prices
• Storage and insurance costs
• Low liquidity
• Risks related to purity verification

( Option 2: Investing via Funds and Mining Stocks

Indirect investment by purchasing fund units or shares of mining companies.

Mutual Funds: For example, DAOL-SILVER focusing on Global X Silver Miners ETF.

Mining Stocks: Major producers like Pan American Silver, Wheaton Precious Metals, Fresnillo, Hecla Mining.

Advantages

• High liquidity
• No storage worries
• Easy trading on stock exchanges

Disadvantages

• Company-specific risks )management, production costs###
• May not always track global Silver prices accurately
• Stock price movements influenced by many factors

( Option 3: Trading Futures Contracts

For experienced investors, trading Silver Futures via TFEX.

TFEX Silver Online Futures linked to 99.9% purity Silver, with a multiplier of 3,000.

Advantages

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

Disadvantages

• Very high risk
• Complex for beginners
• Contract expiry dates

( Option 4: Trading CFDs )Contract for Difference###

Popular among speculators today, trading via CFD contracts.

What is CFD: A contract between investors and brokers to speculate on Silver price differences (XAGUSD) without owning the physical metal.

Advantages

• Low capital requirement (Leverage)
• High flexibility—profit in both directions
• No storage costs
• High liquidity—can open/close positions anytime during trading hours
• User-friendly

Disadvantages

• Leverage risk
• Counterparty risk (Choose reputable brokers)

For Thai investors seeking reliable platforms, Mitrade stands out with no commissions, low spreads, a free demo account with $50,000 virtual funds, and bonuses for new clients.

Opportunities, Risks, and Considerations

( Why are investors turning to Silver?

1. Potential returns: High volatility and lower GSR compared to Gold mean Silver can appreciate more significantly in percentage terms.

2. Unstoppable demand: The shift toward clean energy EVs and digital tech is a long-term trend with no reversal. Silver will benefit for years.

3. Affordable price per ounce: Silver is cheaper than Gold, making it more accessible for retail investors.

4. Hedge: Like Gold, Silver protects against inflation and offers safe haven during uncertain times.

) Risks not to forget

1. Sharp volatility: Can generate huge gains but also large losses.

2. Economic sensitivity: 55% of demand is industrial. If the economy slows, Silver is more affected than Gold.

3. Hidden costs: Physical Silver requires storage, insurance, and security measures.

4. No income: Silver does not pay interest or dividends; returns come solely from price appreciation (Capital Gain).

Summarizing Silver in Your Portfolio

Silver today is not just the “poor man’s gold” but a meaningful asset in the global economic transition.

Whether Silver will be part of your portfolio depends on your goals and risk appetite.

But for investors committed to this opportunity, having a trustworthy trading platform is key. Mitrade offers Thai investors easy access to Silver prices in the global market, with no commissions, low spreads, free demo funds, and bonuses for beginners.