Why is Silver becoming a more prominent investment choice than gold in 2025?

The price of silver has surged dramatically in recent times, and global investors are beginning to recognize the opportunities behind this movement. So, what exactly is Silver, and why is it more interesting than gold in the current situation? Let’s dive in.

The History of Silver Beyond Just Jewelry

Before paper money gained dominance, silver was already a true store of value. Humans have been using silver for trade and wealth accumulation for over 4,000 years.

• Since ancient times, silver was cast into rings and bars with standard weights (around 3,000 BC)
• In the 16th century, Spain mined silver ore to produce coins, which became the first global currency accepted across 7 continents
• It remained legally recognized as legal tender in the US until 1857 (when the gold standard was abolished)

Although its role as official currency ended in 1935 (with the abolition of the gold standard), silver continues to be produced as bars and coins for investment purposes to this day.

What Makes Silver Better Than Gold?

What sets silver apart from gold and other precious metals is its unique properties that cannot be replaced:

Best electrical conductor → Silver is a key component in all electronic devices

Maximum reflectivity → Enhances solar panel efficiency by 2-3 times

Antibacterial properties → Used in bandages, medical tools, and water filtration systems

Ductility and flexibility → Suitable for microelectronics requiring precision

These factors are why silver has become a key commodity in the era of clean energy, electric vehicles, 5G networks, and artificial intelligence.

The Silver Market Faces an Inevitable Deficit

The World Silver Survey 2025 report from The Silver Institute reveals interesting data: The silver market is in a structural deficit ###Structural Deficit( for the fourth consecutive year.

This means: The world consumes more silver than can be produced and recycled combined.

)Demand surges

Industrial demand hits record highs of 680.5 million ounces in 2024 ###accounting for about 59% of total demand(

The main drivers are future-oriented industries:

• Solar energy systems
• Electric vehicles
• 5G electronics and AI

)Supply lags

While demand explodes, supply faces structural constraints:

• Inflexible production
• By-products from lead, zinc, and copper mines (which may decline)
• Global inventories are shrinking

This situation is a “Perfect Storm” pushing prices higher to find a new equilibrium.

Silver Price vs Gold: What Does the Gold/Silver Ratio Indicate?

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

• 2020 (Market Shock): GSR soared to an all-time high of 124:1 (as investors flocked to safe havens)
• 2011 (High Confidence): GSR dropped to 31:1 (investors accepted higher risk for higher returns)
• Currently: GSR remains around 84:1 (above the long-term average)

Implication: The market has not yet priced silver’s fundamental industrial value. This gap may present investment opportunities.

Gold vs Silver: Clear Comparison

For retail investors: Silver is an attractive growth tool ###Growth Investment(, albeit with higher risk.

4 Ways for Thais to Start Investing in Silver

) 1. Physical Silver( Buy bars or coins from reputable dealers

Advantages: Actual ownership, no counterparty risk
Disadvantages: High initial capital, price premiums )Premium###, storage and insurance costs

2. Invest via mining funds and stocks###

Purchase units in funds investing in global silver mines or buy shares of producers

Examples: Pan American Silver, Wheaton Precious Metals, Fresnillo, Hecla Mining

Advantages: High liquidity, no storage needed
Disadvantages: Company-specific risks, may not track silver price 100%

( 3. Trade via futures contracts) For professional investors familiar with derivatives markets

Advantages: Leverage, profit in both directions
Disadvantages: Very high risk, expiration dates, suitable for experienced traders

( 4. Trade Silver via CFDs )Contract for Difference( A flexible and popular method for short- to medium-term investors

Advantages:

• Low capital requirement )Leverage###
• Flexibility: go long or short
• No hidden costs ###Storage(
• High liquidity, tradable 24/5

Disadvantages: Leverage risk, choose reputable brokers

Pros and Risks to Know

) Opportunities in Silver Investment

1. Higher returns than gold - High volatility, but GSR high = huge potential
2. Sustainable demand - Trends in clean energy, EVs, digital tech continue
3. Easy access - Lower per-ounce price than gold by many times
4. Inflation hedge - Long history of value preservation

Risks to Manage

1. High volatility - Price swings are significant; suitable for risk-tolerant investors
2. Economic sensitivity - Production slowdown could reduce demand
3. Hidden costs if holding physical - Storage, insurance, theft risk
4. No special yields - No dividends; returns rely solely on price differences

Conclusion: Silver as a Transformative Asset

Silver is not just a precious metal for collectors. It is a powerful asset at the intersection of monetary history, industrial science, and market dynamics.

The recent surge in silver prices is not coincidental but supported by massive and fundamental factors converging:

• Supply deficit issues
• Explosive industrial demand
• Changing global economy
• Market undervaluation of silver

For investors interested: Multiple options are available, from physical holdings to derivatives trading, depending on your goals, investment style, and risk appetite.

Investing involves risks. Make informed decisions and conduct thorough research before investing.