Silver Element in the Digital Age: From Investment Metal to Future Technology Asset

If you have been following precious metals market news over the past month, you may have noticed that silver is becoming an increasingly discussed topic. Not only because prices are soaring but also due to various factors driving its value, prompting international investors to see new potential in an asset once considered less than gold.

Silver: The Return of the Misunderstood Precious Metal

The history of silver as currency is as long as that of gold. Often, we forget that it poses similar investment risks.

Archaeological evidence indicates that as early as 3000 BCE, humans used silver in the form of rings and standardized bars as a medium of exchange. In the 16th century, when Spain discovered large deposits in South America, silver became the first international currency accepted across all continents and remained legal tender in the United States until 1857.

The role of silver as a monetary reserve ended when the gold standard system collapsed about 90 years ago. However, the disappearance of official monetary status did not mean the loss of silver’s value. In the modern era, it has taken on an even more significant role.

Why Silver Has Become the Heart of Future Technology

What makes silver different ( and more important than ) are its physical properties that no other metal can replace.

Best conductor of electricity and heat in nature: In an era where every electronic device matters, silver has become an unavoidable component—from smartphones to smart sensors.

Highest reflectivity: This property makes silver crucial in solar panels. As the world shifts toward clean energy, demand for solar panels skyrockets.

Antimicrobial properties: Silver is widely used in medicine, from advanced wound dressings for acne patients to medical instruments.

Flexibility and ease of shaping: This characteristic makes silver a key material in manufacturing tiny components.

The entire global market depends on silver inevitably—whether in developing electric vehicles, 5G networks, or infrastructure for artificial intelligence.

The Big Picture: Structural Deficit Reality

The World Silver Survey 2025 report by The Silver Institute reveals an undeniable truth: the silver market has been experiencing a structural deficit for four consecutive years.

The issue is not only here—demand reached 680.5 million ounces in 2024, nearly 59% of which came from the industrial sector, while supply could not keep up.

Supply factors are complex:

• Mine production stagnates
• By-product output from other mines (lead, zinc, copper) decreases
• Global inventories shrink
• Recycling volumes remain insufficient

This is the “Perfect Storm” formula, according to many analysts, which could exert significant upward pressure on prices at certain times.

Market Sentiment: The Gold/Silver Ratio

For investors wanting to understand whether silver is over- or undervalued compared to gold, the Gold/Silver Ratio (GSR) is a key tool.

In times of high fear (such as March 2020 when COVID-19 spread), investors flocked to gold as the safest asset, causing the GSR to soar to 124:1, meaning it takes 124 ounces of silver to buy one ounce of gold.

In 2011, as confidence returned, investors became more risk-tolerant, and the GSR shrank to 31:1.

Currently, the GSR is around 84:1, still above the historical average. This may indicate that the market has not fully priced in the industrial fundamentals of silver—potentially an opportunity waiting for investors.

Deep Comparison: Gold vs. Silver

Silver responds more to economic cycles than gold. When the economy expands, industrial demand increases, often driving prices sharply higher. Conversely, during economic slowdowns, reduced risk appetite exerts downward pressure on prices.

Macroeconomic Drivers

Monetary policy and interest rates: Lower interest rates in 2025 are seen as a key factor fueling silver prices.

Strength of the US dollar: Silver moves inversely to the dollar. When the dollar weakens, foreign investors buy silver at lower prices, boosting demand and prices.

Inflation and geopolitical risks: Silver becomes an option for those seeking to hedge against currency devaluation and global uncertainty.

Investment Paths in Silver: Personal Options

( Method 1: Holding Physical Silver

Trusted companies in Thailand such as Ausiris, MTS Gold, and Bowins Silver sell pure silver bars and coins. Suitable for investors who want actual ownership.

Advantages: Own tangible assets, no counterparty risk, high privacy.

Disadvantages: High initial investment, buy/sell spreads )Premium### over market price, storage and insurance costs, lower liquidity, need to verify purity.

Method 2: Mining Stocks and Investment Funds

Invest through mutual funds focused on mining companies, such as DAOL-SILVER fund referencing the Global X Silver Miners ETF, or buy shares of major producers like Pan American Silver, Wheaton Precious Metals, Fresnillo.

Advantages: High liquidity, easy trading, no storage needed.

Disadvantages: Company-specific risks, management risks, production costs, local political issues.

( Method 3: Futures Contracts

Trade on TFEX )Thailand Futures Exchange### by trading TFEX Silver Online Futures, which reference 99.9% pure silver prices.

Advantages: Leverage, low initial capital.

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

( Method 4: CFD )Contract for Difference(

A popular channel for short- to medium-term speculation, trading the symbol XAGUSD )Silver/USD.

Advantages:

• Very low initial investment
• High leverage
• Profit in both rising and falling markets
• No storage costs
• High liquidity, nearly 24/5 trading

Disadvantages: Leverage risk, counterparty risk, choose a reputable broker.

For Thai investors seeking CFD trading platforms for silver, Mitrade offers many benefits: no commission, low spreads, a free demo account with $50,000 virtual funds, and bonuses for new clients.

Risks and Precautions

High volatility: Silver prices can change rapidly, especially in the short term.

Economic sensitivity: During economic slowdowns, industrial demand drops, leading to price declines.

No income: Silver does not pay interest or dividends; returns come solely from price changes.

Hidden costs: Physical storage requires insurance and storage fees.

Summary: Is Silver an Opportunity or a Trap?

Silver is not for everyone. It requires understanding, planning, and risk management.

Long-term investors seeking safe assets may prefer gold. However, those willing to accept higher risks and seek greater potential returns should consider the current fundamentals of silver—ranging from its lower price compared to gold to its structural deficit and strong industrial demand—all pointing in the same direction.

Most importantly, choose an investment channel suited to your personality and ensure you understand the market drivers before investing even a single baht.