Will the price go higher than gold? Why are seasoned investors now switching to this?

A Strange Phenomenon Is Happening in the Precious Metals Market Recently, Silver has not only surged continuously but also started attracting the attention of studio-level investors, who not long ago thought Silver was just a substitute currency.

What is happening? And why has it come to this point?

The Evolution of Money from Ancient Times to the Obsolete Gold Standard

It’s not a new thing Silver is as old as human civilization - used as a medium of exchange for over 4,000 years, but its role has changed over different eras.

History tells us:

Before the Spanish silver standard coins, around the 16th century, Silver was used as currency in the form of rings and bars with precise weights. Ancient documents indicate that Silver was used for payments as early as 3000 BC.

Spain cast silver coins and let them travel around the world - making it the first currency accepted on all continents.

But with the replacement by paper money, Silver quietly slipped from the financial stage, leaving Gold as the sole dominant precious metal.

So… Why has Silver’s value increased immediately?

Because the world has changed

That’s the answer - Silver didn’t “return,” but was “rediscovered” because the world needs it not as money but as a material.

Properties of Silver that Gold lacks:

  • Excellent conductor of electricity and heat - making it indispensable in technological advancements
  • Best reflectivity - solar energy industry relies on it to convert light into electricity
  • Antibacterial properties - used in medicine long before antibiotics
  • Flexible and easy to process - which makes Silver highly sought after by engineers

Systems like 5G, electric vehicles, solar panels, AI - all require large amounts of Silver.

Catastrophic supply? Out-of-control demand

Data from the World Silver Survey 2025 tells a rather alarming story:

For the fourth consecutive year, the Silver market is in a structural deficit - industries demand more Silver than the world can produce.

Industrial demand exceeds 680.5 million ounces, reaching an all-time high, accounting for nearly 60% of total demand.

Supply side? No official figures available

Is production sufficient? No. Stocks are decreasing, by-products from other metal mining are shrinking - this situation is called a Perfect Storm in analysis circles.

Gold vs Silver: A real comparison

Once a year, investors ask: What is the Gold/Silver Ratio?

It indicates how many ounces of Silver are needed to buy 1 ounce of Gold.

  • Tight market (March 2020): ratio soared to 124:1 - investors rushed to buy Gold
  • Strong market (2011): ratio dropped to 31:1 - Silver was exposed

Currently? About 84:1 - meaning Silver is still undervalued

This is a signal investors see - the market has not yet fully priced in Silver’s true industrial value.

Other differences:

Aspect Gold Silver
Market size ~30 trillion dollars ~2.7 trillion dollars
Central bank holdings Large holdings Almost none
Volatility Low (Safe) High 2-3 times (Opportunity)
Bullish returns Moderate Deep

How to invest: Choose according to your timing

1. Gold Bars ( - Traditional method

Buy physical bars - where to find? Trusted stores in Thailand include Ausiris, MTS Gold )Mae Thong Sook(, Bowins Silver, SNP Gold.

Pros: Authentic product, no counterparty risk
Cons: High initial investment, storage costs, insurance, low liquidity

) 2. Mining Funds/Stocks ### - Modern approach

No need to buy physical assets - buy funds like DAOL-SILVER or stocks of global mining companies (Pan American Silver, Wheaton Precious Metals)

Pros: High liquidity, no storage worries
Cons: Company risk, may not track Silver price 100%

3. Futures (@TFEX Silver) - For professionals

Silver futures contracts traded on TFEX - multiplier 3,000 times

Pros: Low starting capital, high leverage, profit in both directions
Cons: Huge risk, complex, contract expiry

4. CFD (@Contracts for Difference) - Most flexible

Trade Silver (XAGUSD) through CFD brokers like Mitrade

Pros: Low capital, highly flexible, no hidden costs, trade 24/5
Cons: Leverage risk, must choose a trustworthy broker

Comparing the 4 channels: Which suits you?

Method Suitable for Advantages Disadvantages
Gold Bars Long-term, wealth accumulation Authentic, safe High investment, low liquidity
Funds/Stocks Liquidity seekers Easy to sell, diversify Company risk, not 100% certain
Futures Professionals, speculation Leverage, two-way profit Very high risk, complex
CFD Speculation, short- to medium-term Low capital, flexible, 24/5 Leverage risk, need reliable broker

For beginners wanting a safe Silver market entry without pressure, CFD via Mitrade is a balanced choice:

  • ✅ Zero commission, low spread
  • ✅ Starting investment $50 only
  • ✅ Free demo account $50,000 for practice
  • ✅ Bonuses for new customers $100

Opportunities and dangers: Be clear

Opportunities 🚀

  1. Higher returns than Gold - due to volatility and still low valuation
  2. Unstoppable long-term demand - clean energy, EVs, 5G, AI all need Silver
  3. Affordable entry price - per ounce much cheaper than Gold by dozens of times
  4. Inflation hedge - history shows Silver preserves value well

Dangers ⚠️

  1. Volatility risk - can fall as sharply as it rises
  2. Economic sensitivity - if the economy slows, Silver declines
  3. Storage costs - physical storage incurs additional expenses
  4. No interest - returns only from price differences

Final conclusion: Silver is on the rise

Silver is no longer the money of the poor; it has been “rediscovered” by the global market, which has decided that - its future value will be indispensable.

The current price, still comparable to Gold (ratio 84:1), could be the entry point many investors are looking for.

But remember - no investment is 100% safe. Silver has potential but also risks. The better you understand and prepare, the better it can rise.

Everyone can now open a Silver trading account 📈

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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.
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