Money as the Metal of the Future: Why Investors Worldwide Are Paying More Attention

Last year, silver did not just serve as an investment asset like gold anymore. With its price soaring to multi-year highs, it attracted massive attention from the global investment community. Today, we will explore why silver has become a target for investors seeking better returns than gold.

Why Silver Captures Investors’ Hearts: More Than Just an Ordinary Precious Metal

Before the advent of paper money and digital assets, silver has served as a medium of exchange and store of value for over 4,000 years. History tells us that silver was not only a commodity for sustenance but also the most trusted currency by humans.

In the 16th century, Spain cast silver into coins, which became the first global currency accepted across all continents. It remained legal tender in the US until 1857. Although its role as the main currency ended after the abolition of the silver standard in 1935, the production of bars and coins for investment purposes has continued to this day.

This metal is shaping the future of the world

What differentiates silver from gold lies in its physical properties that cannot be replaced. These features have created strong demand from the industrial sector:

• Best conductor of electricity and heat: Making it an indispensable component in electronic devices
• Highest reflectivity: Enhancing the efficiency of solar panels
• Antibacterial properties: Widely used in medicine, from bandages to surgical instruments
• Flexibility and ease of processing: Suitable for high-precision microelectronics

These factors are driven by megatrends such as the transition to clean energy, electric vehicles, 5G networks, and AI infrastructure—all of which rely heavily on this metal.

Factors Driving Silver Today: Imbalance

The movement of silver prices is not coincidental. Various factors operate together at a macroeconomic level.

Monetary policy pressures

The Federal Reserve’s rate cuts in 2025 created an environment conducive to precious metals. The weakening of the dollar boosted foreign investors’ access. Meanwhile, geopolitical tensions continue to sustain demand for safe-haven assets.

The core issue: Structural deficit

According to the World Silver Survey 2025 by leading research agencies, the silver market is facing a “structural deficit”—the world needs more silver than can be produced and recycled. This situation has persisted for the fourth consecutive year.

Demand surges: The industrial sector requires 680.5 million ounces in 2024, accounting for 59% of global demand, especially from the future technology sector.

Supply remains stagnant: Production is constrained by structural issues, including being a byproduct of other mining operations and dwindling stockpiles.

The inability of both sides to adjust is seen as a pivotal point that could push prices to new, higher levels.

Comparing Silver and Gold: What Are the Key Differences?

The difference between the two precious metals is not just in price but in their roles and investment potential.

Gold/Silver Ratio: A Sign of Undervaluation

The “Gold/Silver Ratio” (Gold/Silver Ratio) indicates how many ounces of silver are needed to buy one ounce of gold. This metric is not just a statistical figure but reflects market psychology.

During the COVID-19 crisis (March 2020), this ratio soared to 124:1—an all-time high—as investors flocked to the safest asset, gold.

Conversely, as confidence returned, investors sought higher returns in silver—reducing the ratio to 31:1 in 2011. The current level, still above 80:1, suggests the market has not fully priced silver relative to fundamentals.

Market figures and volatility

The gold market is over ten times larger, valued at about $30 trillion, compared to silver’s approximately $2.7 trillion. This difference means that when capital flows into silver, prices can be affected more dramatically than gold.

As a result, silver exhibits 2-3 times higher volatility than gold. This is a double-edged sword—during bear markets, it can fall faster; during bull markets (Bull Market), it can also surge higher.

Key differences: Roles

Gold is a traditional safe-haven asset, held as reserves by central banks. In contrast, silver is a hybrid asset—half precious metal, half industrial commodity. Its price is more closely linked to industrial demand and offers growth opportunities from fundamental factors.

4 Ways to Invest in Silver: Available Options

Method 1: Physical Silver - The Classic Approach

Buying bars (Bars) or coins (Coins) is the traditional way to invest.

Advantages: Actual ownership, tangible asset, no counterparty risk.

Disadvantages: Requires significant initial capital, high premiums (Premium), storage and insurance costs, low liquidity.

Method 2: Investing via Funds and Mining Stocks - Indirect Approach

Accessible through mutual funds investing in global silver mining companies or by directly purchasing shares of major producers.

Advantages: High liquidity, no storage worries, benefits from company growth.

Disadvantages: Company-specific risks (Management, production costs, geopolitical risks), stock prices may not fully track silver prices.

Method 3: Futures - For Experienced Investors

Futures contracts for those familiar with derivatives markets.

Advantages: Low capital requirement (High leverage), profit in both directions.

Disadvantages: Very high risk, complex, expiration dates.

Method 4: CFD (Contract for Difference) - Highly Flexible

Speculative contracts based on silver price differences (XAGUSD).

Advantages:

• Low capital requirement (Leverage amplifies buying power)
• Profit in rising and falling markets
• No storage or insurance costs
• High liquidity, easy to open/close positions 24/5
• Market prices almost real-time

Disadvantages: Leverage risk; choose reputable brokers.

Summary of Pros and Cons

Opportunities and Risks

Opportunities

1. High Return Potential: Greater volatility and historically lower valuation (High GSR)
2. Strong Long-term Demand: Transition to clean energy, electric vehicles, digitalization—irreversible trends
3. Accessible Price: About half the price of gold, easier for retail investors
4. Inflation Hedge: Long history of value preservation

Risks

1. High Volatility: Massive gains can turn into severe losses
2. Economic Sensitivity: Demand driven largely by industry, affected by recessions
3. Holding Costs: (Physical options) storage, insurance, other costs
4. No Yield: No interest or dividends; gains only from price appreciation

Conclusion: Is Silver Your Choice?

Silver is no longer just a fractional metal. It has become a significant asset in the modern era. Its success depends on:

• Your investment goals: Preservation of value or growth?
• Your risk tolerance: Comfortable with higher volatility?
• Time horizon: Long-term investment or short-term trading?

For modern investors seeking convenient and flexible options, CFD trading through reputable broker platforms is an attractive choice. It eliminates worries about storage, dividends, and counterparty risks, making access to silver easier and safer today.

Make informed decisions, monitor market data, and remember that all investments carry risks—not suitable for everyone.