Silver (Silver) has the potential to generate returns exceeding those of gold? The complete investment guide for Thai investors

Over the past period, Silver (Silver) has continuously risen to new highs, attracting the attention of global investors. Today, we will provide an in-depth perspective on why Silver is worth watching as an investment tool and how beginners can get started.

Today’s Silver Bar Prices and Safe Trading

The silver metal market fluctuates constantly based on various factors.

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Current Drivers of Silver Price

The price of Silver is not just random or driven solely by sentiment but is determined by a combination of macroeconomic factors and market fundamentals.

###Macroeconomic outlook: The broader economic context

Monetary policy and interest rates have a clear relationship with asset values. When central banks cut interest rates (as seen in 2025), Silver benefits from capital flows seeking safe havens.

Major currency movements significantly impact prices. When major currencies weaken, investors worldwide find buying Silver less costly, increasing demand.

Uncertain economic environment has elevated the role of silver as a safe-haven asset, similar to gold. During economic or political crises, signals often point to Silver, prompting investors to seek refuge.

###Commodity level: The war between supply and demand

The latest data from the World Silver Survey 2025 by The Silver Institute reveals a challenging situation: the Silver market is facing a “structural deficit” due to global demand exceeding combined production and recycling.

Rising demand: In 2024, industrial use of Silver reached 680.5 million ounces—an all-time high. The main drivers are industries vital to the future: solar energy projects, electric vehicles, 5G technology, and artificial intelligence.

Inelastic supply: Production cannot be quickly increased due to structural reasons, with inventories declining and by-products from other mining activities limited. This situation has persisted for four years.

Understanding the Unique Properties of Silver: Why It Is Essential

Beyond its historical role as a store of value for over 4,000 years, Silver has physical characteristics that cannot be replaced:

  • Superior electrical and thermal conductivity, making Silver a key component in modern electronics.
  • Highest reflectivity, enhancing the efficiency of solar panels.
  • Antimicrobial properties, used in medical and food applications.
  • Malleability and ease of processing for microelectronics and small-scale applications.

These properties make Silver irreplaceable, especially in clean energy tech, electric vehicles, and digital infrastructure.

Silver vs. Gold: Key Differences for Investors

Comparative studies between these two precious metals reveal unique opportunities.

Gold/Silver Ratio: An important indicator

The GSR indicates how many ounces of silver are needed to buy one ounce of gold:

  • During fearful market periods (such as March 2020), the ratio soared to 124:1 as investors flocked to gold for safety.
  • When confidence returned (like in 2011), the ratio dropped to 31:1 as investors accepted higher risk for higher returns.
  • Currently, the ratio remains around 84:1, indicating the market has not yet priced Silver according to its fundamentals.

###Structural differences: Size, volatility, roles

Market size: Gold’s market is about $30 trillion dollars, while Silver’s is only ~$2.7 trillion. The smaller market means that the same amount of capital can have a larger impact on prices.

Different volatility: Silver prices tend to move 2-3 times more sharply than gold. This is a double-edged sword: in bear markets, Silver can fall harder, but in bull markets, it can rise rapidly.

Role in the financial system: Central banks hold gold as reserves, but Silver does not play this role. Silver prices are more closely linked to economic cycles and industrial demand.

Summary comparison table:

Feature Gold Silver
Market size (approx.) $30 trillion dollars $2.7 trillion
Industrial demand 10-15% 55-60%
Central bank holdings Significant reserves No significant role
Volatility Lower 2-3 times higher
Current Gold/Silver Ratio ~84:1 (above average)
Main role Risk hedge asset Hybrid (risk hedge + industrial demand)

For risk-tolerant investors, Silver offers different growth potential.

4 Ways for Thais to Start Investing in Silver

1. Physical Silver Ownership

The traditional method: buying silver bars or coins.

Management points:

  • In Thailand, reputable dealers such as Ausiris, MTS Gold (Mae Thong Sook), Bowins Silver, and SNP Gold sell investment-grade silver bars, most with central offices for trading.

Advantages:

  • Actual ownership of the asset
  • No counterparty risk
  • High privacy

Disadvantages:

  • High initial costs
  • Significant premium over market price
  • Costs for secure storage and insurance
  • Lower liquidity
  • Risks in verifying purity

( 2. Mutual Funds and Mining Stocks

Indirect access via companies

Approach:

  • Funds like DAOL-SILVER focus on investing in Silver ETFs worldwide.
  • Stocks of major mining companies such as Pan American Silver, Wheaton Precious Metals, Fresnillo, Hecla Mining.

Advantages:

  • High liquidity
  • Easy to trade on stock exchanges
  • No need for physical storage

Disadvantages:

  • Company-specific risks )management, production costs, political risks###
  • Stock prices may not track global Silver prices 100%

( 3. Futures Contracts

For experienced investors familiar with complex instruments

Options in Thailand:

  • TFEX Silver Online Futures based on 99.9% pure Silver prices globally.
  • Contract multiplier: 3,000 times the reference price.
  • Settled in cash without currency conversion.

Advantages:

  • Low initial costs )High leverage###
  • Profitable in both bull and bear markets

Disadvantages:

  • Very high and complex risk
  • Contract expiry dates
  • Suitable only for experienced traders

( 4. CFD )Contract for Difference###

A fast-growing, flexible method

Description: Contracts between investors and brokers to speculate on Silver price differences (often written as XAGUSD) at opening and closing, without owning the actual asset.

Advantages:

  • Low initial costs (Leverage available)
  • Highly flexible: open long (Long) or short (Short) positions
  • No hidden costs (no storage, no insurance)
  • High liquidity, nearly 24/5 trading

Disadvantages:

  • Leverage risk
  • Counterparty risk (must choose reputable brokers)
  • Higher risk than other methods

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Investing involves risks and may not be suitable for everyone.

$100 Comparison table of 4 investment channels

Method Suitable for Advantages Disadvantages Channel
Physical Silver Bars Long-term investors, those seeking actual ownership Actual ownership, no counterparty risk High costs, low liquidity, storage fees Leading gold shops
Funds/Stocks Investors seeking liquidity Easy trading, no storage, diversification Company-specific risks, may not track Silver price Asset management firms, stock exchanges
Futures Professionals, high risk tolerance Low costs $50 Leverage###, two-way profit Very high risk, complex, expiry dates TFEX
CFD Short- to medium-term traders, seeking flexibility Low cost (Leverage), flexible, high liquidity Leverage risk, counterparty risk Reputable CFD brokers

Factors Influencing Investment Decisions: Opportunities and Risks

( Opportunities and Advantages

1. Higher return potential: Due to higher volatility and lower current valuation compared to gold, Silver offers higher percentage gains in bull markets.

2. Sustainable industrial demand: Trends toward clean energy, electric vehicles, and digitalization will sustain Silver demand for years.

3. Easy access for retail investors: Lower per-ounce price than gold makes diversification easier for small investors.

4. Value preservation features: Silver has a long history as an asset that preserves value against inflation and currency depreciation.

) Risks and Disadvantages

1. High volatility: The same factors that can generate massive gains can also cause severe losses.

2. Economic cycle correlation: Since much demand is industrial, economic downturns can impact Silver more than gold.

3. Physical holding costs: Storing physical silver involves storage, insurance, and theft risks.

4. No interest income: Returns depend solely on price changes.

Final Summary

Silver has evolved beyond its traditional image; today, it is a vital asset in the modern global economy.

The clear structural deficit, above-average Gold/Silver Ratio, and rising industrial demand all indicate that Silver holds significant potential in the coming years.

While gold remains the standard for stability, risk-tolerant investors may find Silver’s contracts and trading opportunities appealing, especially for higher returns.

The key is choosing the investment channel that aligns with your goals and risk appetite, whether through physical holdings, asset management, futures, or CFD trading on reliable, efficient platforms.

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