Why has silver (Silver) become an opportunity for Thai investors, and how can the returns surpass those of gold?

Context Shift: The World Turns Its Attention to Silver

In recent years, the price of physical silver has surged, prompting global analysts to take a serious interest. The reality is that Silver is not just a commodity in the global market, but an essential component of many future technologies.

For Thai investors seeking new investment opportunities, understanding Silver and the movements of the physical silver price in the global market may open doors to unprecedented returns.

Numbers Don’t Lie: A Fraction of the Price, But Enormous Demand

The intrigue of Silver lies in the Gold/Silver Ratio – an indicator showing how many ounces of Silver are needed to buy 1 ounce of gold.

Currently, this ratio stands at 84:1, higher than the historical average. This means Silver is still undervalued relative to its properties and demand. This gap is what investors are secretly interested in.

The Silver market size is $2.7 trillion, compared to the gold market at $30 trillion – this difference means that when capital flows into the smaller Silver market, the impact on prices can be 2-3 times greater than gold.

Silver Is Not an Ordinary Precious Metal

The key difference between Silver and gold is their roles. Gold is a reserve asset for central banks, but Silver has become a hybrid metal—part precious asset, part industrial commodity.

Nearly 60% of Silver demand comes from the industrial sector, unlike gold, which accounts for only 10-15%.

Properties of Silver (Silver) That Gold Doesn’t Have

Its excellent electrical and thermal conductivity makes Silver an indispensable material in all electronic devices—from printed circuits to LEDs.

Silver’s reflectivity is used in solar panels, a crucial component in converting sunlight into electricity.

Its antimicrobial properties lead to applications in medical tools, bandages, and water filtration systems.

Its flexibility and adaptability make Silver suitable for microelectronics requiring tiny, complex components.

These factors drive the growth in Silver demand—whether for clean energy transition, electric vehicles, 5G networks, or AI—all of which rely heavily on Silver.

The War Between Demand and Supply: The Perfect Storm

The World Silver Survey 2025 report by The Silver Institute reveals a critical situation – the Silver market is facing a structural deficit that has been increasing for four consecutive years.

In 2024, demand hit a new high of 680.5 million ounces—almost 59% of this demand comes from the industrial sector, especially high-tech industries.

Meanwhile, supply is lagging. Mining production is disrupted, and the Silver obtained as a byproduct from other mining activities such as lead and zinc is inflexible, with market inventories decreasing.

This is a perfect convergence of “growing and inelastic demand” meeting “disrupted and inflexible supply”—many analysts see this as a scenario that could push Silver prices significantly higher.

Why Silver Has the Potential to Outperform Gold

( Market Size and Multiplier Effect

When the same capital—say, 1 billion USD—flows into the gold and Silver markets, the impact differs.

The smaller Silver market means even a modest capital inflow can significantly change prices. This is why Silver tends to be 2-3 times more volatile.

) Volatility in a Bull Market Is an Advantage

Higher volatility – during strong bull markets – can mean Silver surges faster and higher than gold.

Historical data shows that during precious metal bull runs, Silver often outperforms gold substantially.

( Physical Silver Prices Are Still Low

Silver per ounce remains many times cheaper than gold, making it more accessible for retail investors who don’t need large capital to invest in physical silver.

Macroeconomic Factors Driving Silver Prices

) Monetary Policy and Interest Rates

The relationship between interest rates and precious assets is very clear. The Federal Reserve’s rate cuts in 2025 have shifted investor interest toward other assets like Silver.

When interest rates are low, non-yielding assets like Silver become more attractive.

US Dollar

Mostly, Silver prices move inversely to the US dollar. When the dollar weakens, investors from other countries can buy Silver at lower prices in their local currencies, increasing demand and pushing prices higher.

Inflation and Geopolitical Uncertainty

In an era of inflation concerns and geopolitical conflicts, Silver is viewed as a risk hedge—preserving real wealth and protecting against currency devaluation.

How to Invest in Silver (Silver)

Method 1: Holding Physical Silver

Buy physical silver bars ###Silver Bars( or coins )Silver Coins( and store them yourself.

Advantages: Actual ownership, tangible asset, no counterparty risk.

Disadvantages: High initial investment, storage and insurance costs, premiums above global market prices, low liquidity.

Where in Thailand: Leading gold and silver shops such as Ausiris, MTS Gold, Bowins Silver, SNP Gold.

) Method 2: Mining Funds and Stocks

Invest through mutual funds that focus on Silver or buy stocks of Silver mining companies like Pan American Silver or Wheaton Precious Metals.

Advantages: High liquidity, no storage needed, diversification risk.

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

Method 3: Futures Market

Trade futures contracts referencing Silver prices via TFEX.

Advantages: Low initial capital ###High leverage(, profit in both directions.

Disadvantages: Very high risk, complex, suitable for professional investors only.

) Method 4: CFD (Contract for Difference)

Trade Silver via CFD contracts with reputable brokers. This is the most popular option among retail investors in Thailand.

Advantages:

• Very low initial investment ###Leverage(
• High flexibility – trade Silver 24/5
• No storage or insurance costs
• High liquidity

Disadvantages:

• Leverage risk
• Need to choose a trustworthy broker

Example Platform: Mitrade is a good choice for Thai investors, offering:

• Zero commission, low spreads
• Free demo account with $50,000 virtual funds
• Welcome bonus of $100 for new clients

Pros and Risks of Silver Investment

) Advantages

1. High Return Potential – Higher volatility and a still-high GSR create opportunities for significant gains in a bull market.

2. Strong Long-term Demand – The transition to clean energy EVs and AI are mega-trends expected to boost Silver demand for years.

3. Affordable Price Access – Lower prices than gold make Silver more accessible to retail investors.

4. Inflation Hedge – History shows Silver preserves value and protects against cash devaluation.

( Risks

1. High Volatility – The same volatility that can generate huge gains can also cause sharp losses in the short term.

2. Economic Sensitivity – Industrial demand declines when the economy slows.

3. Storage Costs – Physical Silver requires storage and insurance expenses.

4. No Yield – Silver does not pay interest; returns come solely from price changes.

Conclusion

Silver is no longer just the “poor man’s gold.” It has become a vital metal for the tech world, supported by strong fundamentals. The physical silver price still has room to grow, with potential to outperform gold in the medium to long term.

Choosing the right investment method—whether physical, funds, futures, or CFDs—is key to fully capturing this opportunity.

For Thai investors seeking flexibility and convenience, CFD trading platforms like Mitrade, offering zero commissions, low spreads, small initial capital, and a free demo account of up to $50,000, provide an ideal gateway to explore the global Silver market.