Are you completely losing money in the market? The reason is that investors are turning their attention to silver instead of gold.

If you just found out that silver has been experiencing a persistent structural deficit for the fourth consecutive year, you might start to understand why prices are soaring uncontrollably.

This phenomenon isn’t caused by mere speculation, but is the result of massive changes in the new world order, which has brought Silver back to a significant role in the global economy after a long time.

Why is silver important in this era?

A common mistake is to see Silver as just “the gold of the poor,” but in reality, silver has physical properties that gold does not, making it an unavoidable raw material for building the future.

The best conductor of electricity in the world? That’s Silver. The highest reflectivity? Also Silver. Antibacterial properties? Silver is divine.

From solar panels that provide clean energy, electric vehicles, 5G technology, to AI—all rely inevitably on Silver.

History clearly shows this. Humans have used Silver as a medium of exchange for over 4,000 years, from ancient Greece to Spain in the 16th century, where it was minted into coins that became the world’s first currency.

The problem: soaring demand, supply bottleneck

Data from the World Silver Survey 2025 paints a clear picture: the Silver market is facing a noticeable deficit. The world needs more Silver than can be produced and recycled combined.

The industrial sector consumed 680.5 million ounces in 2024—accounting for 59% of total demand. Clean energy, EVs, electronics, 5G—all are growing industries with no signs of slowing down.

On the supply side? It’s hindered by multiple factors. Production is stagnating, heavily reliant on by-products from mining other metals like lead, zinc, copper. Simply put, Silver isn’t a product that can be rapidly increased in supply.

Silver vs gold: who will rise?

Comparing these two assets is like comparing a car and a motorcycle. It’s not about which is better, but which suits different investors.

The gold market is about $30 trillion, while Silver is only around $2.7 trillion. This number matters—when the same amount of capital flows in, Silver is more affected, leading to price volatility 2-3 times higher than gold.

The Gold/Silver Ratio currently stands at about 84:1. This means 84 ounces of Silver are needed to buy 1 ounce of gold. This ratio is higher than the historical average, indicating Silver still has room to increase in value.

Central banks worldwide hold gold as reserves, but Silver is a hybrid asset—half precious metal, half industrial commodity. This structure makes Silver more dependent on economic cycles but also offers higher potential returns.

What factors drive Silver prices?

Macroeconomics

Lower interest rates in 2025 make investments in non-yielding assets like Silver more attractive. When savings accounts no longer offer returns, investors look elsewhere.

A weakening US dollar allows investors in other countries to buy Silver at lower prices, increasing demand.

Inflation and global political uncertainty—Silver seeks to be a safe haven asset like gold. When markets are worried, Silver benefits.

Market fundamentals

What makes analysts alert is the persistent deficit, not just temporary but seemingly becoming the “new normal” of the market.

The 680.5 million ounces needed by industry in 2024 is a record high. EVs are growing rapidly, new solar panels are being installed everywhere, 5G is expanding, AI is advancing.

On the supply side? Both “current” and “future” supplies are lacking. No major new sources are coming online; reliance remains on by-products from other mines.

4 ways to invest in Silver

1. Physical ownership

Buy silver bars or coins for storage. Best if you want true ownership. Thailand has major gold dealers selling Silver. Advantages: actual ownership, no counterparty risk. Disadvantages: high initial capital, storage and insurance costs, low liquidity.

2. Mutual funds or mining stocks

Major companies like Pan American Silver, Wheaton Precious Metals, Fresnillo produce Silver. Advantages: high liquidity, easy trading, no storage worries. Disadvantages: company risk, stock prices may not always follow silver prices.

3. Silver futures

Forward contracts traded via TFEX. Suitable for professional investors. Advantages: low capital requirement, high leverage, profit from both rising and falling markets. Disadvantages: very high risk, complex, expiration dates.

4. CFD (Contract for Difference)

A very popular way to trade Silver right now.

Why is CFD suitable? Because it allows starting with small amounts of money, no need to own the physical asset, high liquidity, nearly 24/5 trading.

Through platforms like Mitrade, Thai investors can trade Silver CFD (XAGUSD) conveniently, with benefits such as:

  • No commission, low spreads
  • Minimum investment of only (
  • Free demo account with $50,000 for practice
  • Bonuses for new customers )dollars

Pros and cons of Silver

Opportunities:

  • Higher potential returns than gold due to greater volatility
  • Growing industrial demand—structural growth
  • Lower per-ounce price makes it accessible to retail investors
  • Acts as an inflation hedge like gold

Risks:

  • High volatility, potential for sharp losses in short term
  • More sensitive to economic downturns than gold
  • Physical ownership requires storage costs
  • No interest or dividends; returns come only from price differences

Summary: Is now the time for Silver?

Silver is no longer just a residual from gold but a commodity that moves the future. Structural deficits + unstoppable industrial demand + room for price growth = reasons why savvy investors see Silver as an opportunity not to overlook.

No matter which investment method you choose, having the right tools and a trusted platform is crucial. For those seeking flexibility and low costs, CFD via Mitrade opens the door to the Silver market worldwide with ease.

Most importantly, start today—not just wish to begin.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin

Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • بالعربية
  • Português (Brasil)
  • 简体中文
  • English
  • Español
  • Français (Afrique)
  • Bahasa Indonesia
  • 日本語
  • Português (Portugal)
  • Русский
  • 繁體中文
  • Українська
  • Tiếng Việt