Getting to Know Silver: Why White Metal Has Become a Modern Investment Asset

While investors worldwide remain focused on gold, a “neglected asset” is quietly stepping into the spotlight: Silver. No longer just the “poor man’s gold,” it has become a high-potential asset capable of generating returns surpassing gold in today’s market. The record-breaking surge in silver prices last year wasn’t coincidental but driven by structural deficits between supply and demand, fueled by future technologies like clean energy, 5G, and AI.

White Metal: When Ancient Art Meets Modern Innovation

Humans have used Silver as a medium of exchange and store of value for over 4,000 years, proving its fundamental qualities are hard to replace.

Archaeological evidence shows that Silver was used as currency in rings or bars with standard weights as early as 3,000 BC. In the 16th century, Spain imported silver ore to produce coins, which became the first globally accepted currency and remained legal tender in the US until 1857.

Although the official role as money ended after the Silver Standard was abandoned in 1935, investments in silver gradually revived—through coins, bars, and now financial instruments.

White Metal at the Heart of Future Tech

Today, Silver has become central to technological revolutions, thanks to physical properties that gold cannot match:

• Excellent electrical and thermal conductivity makes silver essential in all electronic devices—from smartphones to large servers.

• High reflectivity enhances solar energy conversion efficiency, a key clean energy source of the 21st century.

• Antibacterial properties lead to widespread medical applications, from burn dressings to surgical tools and water filtration systems.

• Flexibility and ease of processing are vital for microelectronics requiring tiny components.

All these factors are driving silver prices upward, as the transition to clean energy, electric vehicles, 5G networks, and AI infrastructure all depend on Silver.

Supply and Demand Clash: When the White Metal Market Faces Challenges

Silver prices are influenced not only by macro factors like monetary policy, interest rates, and the dollar but also by the balance of supply and demand.

According to the World Silver Survey 2025 by The Silver Institute, the most trusted industry source, the silver market faces a severe “structural deficit”—meaning global demand exceeds combined production and recycling for the fourth consecutive year.

Surging demand: The deficit stems from record industrial demand—totaling 680.5 million ounces in 2024, nearly 59% of total demand—primarily driven by future-oriented industries: solar energy, EVs, 5G electronics, and AI.

Lagging supply: Despite rising demand, supply struggles to keep pace due to production disruptions, by-products from mining other metals like lead, zinc, copper, and declining inventories.

This scenario—growing and inelastic demand versus constrained and inflexible supply—is seen by many analysts as a Perfect Storm that could push silver prices to significantly higher levels than in the past.

Gold vs. Silver: When Metals Compete for Market Balance

When comparing investments in these precious metals, a fundamental difference is the Gold/Silver Ratio (GSR)—indicating how many ounces of silver are needed to buy one ounce of gold.

This ratio reflects market psychology. During the COVID-19 crisis in March 2020, investors flocked to the safest asset—gold—causing the GSR to spike to a record 124:1.

Conversely, as confidence returned, in 2011, the ratio dropped to 31:1, as investors sought higher returns in silver.

Currently, the GSR stands around 84:1, above its long-term average, suggesting the market hasn’t fully priced in silver’s industrial fundamentals, leaving room for investors to seek opportunities.

Key Differences to Know

Market Size: The gold market is valued at nearly $30 trillion, compared to about $2.7 trillion for silver. The smaller market size means that capital flows can more dramatically impact prices.

Volatility: Due to its size, silver is 2-3 times more volatile than gold. This can be a double-edged sword—sharp declines in bear markets but also rapid gains in bull markets.

Portfolio Role: Gold is the ultimate safe-haven asset and central bank reserve, whereas Silver is a hybrid—combining precious metal qualities with industrial commodity traits. Central banks typically do not hold silver as reserves, making its price more tied to economic cycles.

5 Ways for Thais to Start Investing in White Metal

For investors interested in Silver and its opportunities, there are several ways to begin, each with pros, cons, and suitability:

1. Physical Silver Investment: Hands-On Future Forecasting

The traditional method involves purchasing tangible silver—bars or coins—for personal ownership.

Trusted Thai dealers include Ausiris, MTS Gold, Bowins Silver, and SNP Gold, mostly with storefronts in commercial districts.

Pros: Ownership of real assets, high privacy, no counterparty risk.

Cons: High initial investment, premiums over spot prices, storage and insurance costs, low liquidity, and purity verification risks.

2. Investing via Mining Funds and Stocks: Let Experts Manage

Indirect investment through mutual funds or ETFs that invest in silver mining companies. For example, DAOL-SILVER focuses on the Global X Silver Miners ETF, offering growth exposure.

Alternatively, international investors can buy shares of major silver producers like Pan American Silver, Wheaton Precious Metals, Fresnillo, or Hecla Mining.

Pros: High liquidity, easy trading, no storage concerns.

Cons: Company-specific risks—management, costs, geopolitical issues.

3. Trading Silver Futures: For Professional Investors

The TFEX (Thailand Futures Exchange) offers Silver Futures contracts based on 99.9% purity silver prices globally.

Contract size is 3,000 times the spot price, settled in cash.

Pros: Low initial capital, leverage, profit from both rising and falling markets.

Cons: Very high risk, expiration dates, suitable only for experienced traders.

4. CFD Trading: Flexible and High-Risk

Trading silver CFDs involves speculating on price differences without owning the physical metal, e.g., XAGUSD.

Platforms like Mitrade offer such services.

Pros: Low starting capital, high flexibility, high liquidity, no storage costs.

Cons: Leverage amplifies risk, counterparty risk, requires careful broker selection.

Comparing Investment Options

Opportunities and Risks in Silver Investment

Opportunities and Advantages

1. Higher Return Potential: Due to high volatility and elevated GSR, silver can outperform gold in bullish markets.

2. Growing Industrial Demand: Transition to clean energy, AI, and digital tech ensures sustained demand for decades.

3. Affordable Entry Point: Lower per-ounce price makes diversification easier for retail investors.

4. Hedge Against Inflation: Silver has a long history as a store of value and inflation hedge.

Risks and Disadvantages

1. High Volatility: Rapid price swings can lead to significant short-term losses.

2. Economic Sensitivity: Industrial demand dependence means economic downturns can reduce prices.

3. Storage Costs: Physical holdings incur costs and security risks.

4. No Income: Silver doesn’t pay dividends or interest; gains depend solely on price appreciation.

Final Thoughts: Silver in the Modern Portfolio

Silver has become a vital asset in the global economy, spanning technology, energy, and finance sectors. Its future potential hinges on understanding its risks, choosing suitable investment channels, and aligning with personal goals.

For Thai investors, accessible platforms and reliable brokers open the door to the global silver market.

The opportunity for higher returns from investing in White Metal is present—just need to grasp the risks, select appropriate methods, and craft disciplined strategies.