I just noticed an interesting phenomenon in the precious metals market. Silver has recently surged to new all-time highs, and it’s not just random price movements. There is a solid fundamental basis behind this.

What’s happening is that the silver market has been facing a "structural deficit" for four consecutive years. According to the 2025 World Silver Survey report, the world’s demand exceeds the combined supply from production and recycling. Industrial demand hit a record high of 680.5 million ounces in 2024, accounting for nearly 59% of total demand.

Why has silver become a scarce commodity? Because it’s not just a precious metal. It’s a symbol of future technology—an excellent conductor of electricity, reflective properties, and antibacterial features. The world shifting toward clean energy, electric vehicles, 5G networks, and AI systems all rely heavily on silver. The USD/THB exchange rate in the global market clearly reflects this urgent demand.

On the supply side, production is unable to keep up. Mining disruptions, reduced by-products from other mining activities, and shrinking inventories all contribute. This situation is viewed as a "Perfect Storm" that could push silver prices significantly higher to new levels.

Compared to gold, silver differs significantly. The silver market is much smaller—about $2.7 trillion versus gold’s $30 trillion—meaning that when capital flows in, the impact on prices is much more intense. Silver’s volatility is 2-3 times higher, making it a double-edged sword. In a bullish market, it can skyrocket much faster than gold.

The current Gold/Silver Ratio is around 84:1, still at a high level, indicating that the market has not fully priced in the industrial fundamentals of silver. This gap presents an opportunity for investors to explore.

For those interested in investing in silver, there are various options. Buying physical silver (coins, bars) is suitable for those who want to hold the asset directly, but it comes with premiums over market prices and storage costs.

Mutual funds and mining stocks are more liquid indirect methods. For example, DAOL-SILVER fund focuses on investing in the Global X Silver Miners ETF, or stocks of major producers like Pan American Silver or Wheaton Precious Metals.

For short- to medium-term traders, CFD (Contract for Difference) trading is very popular. It requires a small initial investment, offers high flexibility, and allows profit from both rising and falling markets. It has no storage costs and high liquidity, nearly 24 hours a day, five days a week.

Platforms like Mitrade offer Silver CFD trading with zero commissions, low spreads, a free demo account with $50,000 virtual funds, and a $100 bonus for new customers. It’s a convenient way for Thai investors to access the global silver market easily.

Of course, silver is not suitable for everyone. Its high volatility means investors must accept greater risks compared to gold. Silver prices are more sensitive to economic conditions because over half of its demand comes from industrial sectors. If the economy slows down, demand may decrease, putting downward pressure on prices.

But for investors willing to accept higher risks and seeking growth opportunities, the current fundamentals are quite compelling. The appropriate price level in THB depends on whether you believe in long-term industrial demand growth. Personally, I think this is a period when paying close attention to this asset is truly worthwhile.