Money (Silver) is not just a precious metal but also the engine of the technology era.

Why Are Silver Prices Soaring Right Now?

Recently, silver prices have hit new all-time highs, not by coincidence but as a result of multiple factors converging that have led global investors to seriously seek Silver. The real reason lies in the fragile balance between supply and demand.

From Reserve Currencies to the Oil of Technology

Before the era of paper money, humans relied on Silver as a medium of exchange for over 4,000 years. Historical evidence shows that:

• As early as 3,000 BCE, Babylonians and Egyptians used weighed silver bars for trade.
• In the 16th century, when Spain discovered abundant silver ore in the Americas, they minted silver coins which became the first international currency accepted worldwide.
• During that period, Silver remained a legal tender in the United States until 1857.

However, since the end of the Silver Standard in 1935, its role has shifted. From a store of value asset, it has returned to being the “modern world’s oil” — indispensable in technology that will define this century.

Unique Properties That Gold Doesn’t Have

No other metal can replace Silver due to its unique characteristics:

Excellent conductor of electricity and heat — making Silver an unavoidable component in electronic devices from smartphones to large servers.

Highest reflectivity — enhancing the efficiency of Solar Cells, essential for the transition to clean energy.

Antibacterial properties — used in developing wound dressings, medical devices, and water filtration systems.

Softness and ease of workability — suitable for creating intricate components in advanced electronics.

These properties are why Silver is not just a risk-hedging asset but a vital part of the manufacturing economy.

Unprecedented Deficit Issues

The most concerning aspect is the imbalance between supply and demand, according to the 2025 report by (The Silver Institute). The market is facing a “structural deficit,” with the fourth consecutive year where global demand exceeds what can be produced and recycled.

Demand side — Industry demand hit a new record of 680.5 million ounces in 2024, indicating a severe deficit. Nearly 59% of total demand comes from manufacturing sectors, especially in solar energy, electric vehicles, 5G communication devices, and artificial intelligence.

Supply side — Production has stagnated, byproduct mining from other ores has decreased, and inventories are shrinking. Analysts see this as a “Perfect Storm” that could push silver prices significantly higher than ever before.

Revealing Overlooked Perspectives

Gold/Silver Ratio — The ratio indicating how many ounces of silver are needed to buy one ounce of gold remains at 84:1, higher than the historical average.

During the COVID-19 crisis, this ratio soared to 124:1 as investors considered gold safer. But as confidence returned, the ratio shrank to 31:1 in 2011.

The fact that the ratio remains high suggests that the market has yet to fully value silver based on its industrial fundamentals. Only room remains for adjustment.

Both markets are significant — the gold market is worth about $30 trillion, while the silver market is approximately $2.7 trillion. The smaller market size means silver prices tend to be 2-3 times more volatile than gold — which can be an advantage or a disadvantage depending on market positioning.

Investment Channels: From Physical Ownership to Derivatives Trading

1. Physical Metals — Actual Ownership

Buying silver bars or coins is the traditional investment method. The advantage is direct ownership of the asset, but drawbacks include storage costs, insurance, and premiums above the global market price.

2. Funds and Mining Stocks — Flexibility and Diversification

Investors can invest through mutual funds that focus on global silver mining companies. The benefit is high liquidity, but it comes with company-specific risks such as management issues, production costs, and political risks.

3. Futures — For Professionals

Silver Futures contracts on TFEX offer high leverage but carry equally high risks. Suitable for experienced investors.

4. CFDs — Easy Access and Flexibility

This method is popular due to low initial capital requirements, no storage concerns, and the ability to trade both long and short positions through reliable online trading platforms, often requiring only $50 .

Modern tools enable investors to access the silver market without high capital.

Opportunities and Risks to Consider

Opportunities:

• High return potential — Greater volatility could lead to substantial gains in a bullish market.
• Sustainable industrial demand — The world will need more money as technology advances.
• Affordable prices — Lower cost per unit allows for risk diversification.

Risks:

• Volatility — Short-term losses are possible.
• Sensitivity — Since most demand comes from industry, silver is more sensitive to economic slowdown than gold.
• No additional yields — Silver does not pay interest or dividends.

Conclusion: Why Is This Moment Important?

Silver is not just an auxiliary asset but an essential link in the future global market. The ongoing deficit, high Gold/Silver Ratio, and long-term industry trends create a situation unlike any before.

For investors willing to accept higher volatility in exchange for potential returns, silver prices at this point could be an intriguing starting point for your investment decisions.