Thailand Silver Market Booms: Industrial Demand and Safe-Haven Funds Drive Silver Futures and ETF Inflows

On July 29, 2026, Thailand's silver market experienced an unprecedented surge. According to the latest data from the Thailand Futures Exchange (TFEX), silver futures contract trading volume soared over 40% in the past week, with open interest hitting a record high. Meanwhile, the silver ETF (ticker: SILVER) listed on the SET posted net inflows for eight consecutive trading days, with cumulative inflows this month exceeding 5 billion baht, far surpassing last year's total. Market analysts point out that silver is transforming from "gold's shadow" to an independent investment theme, driven by both industrial demand and safe-haven capital, making it the standout star in the precious metals market of 2026.

Industrial Demand Surge: Solar and New Energy Drive Silver Consumption

Silver's industrial applications account for over 60% of total demand, with the solar photovoltaic industry being the largest growth engine. According to the latest report from the International Energy Agency (IEA), global solar installed capacity is expected to grow 25% year-on-year in 2026, hitting a record high, driving a sharp increase in silver usage in solar cells. As one of the largest solar module producers in Southeast Asia, Thailand's domestic factories have seen a significant rise in silver demand. The Federation of Thai Industries (FTI) stated that Thailand's industrial silver imports in the first half of 2026 increased 35% compared to the same period last year, with 70% used in solar manufacturing.

In addition, silver usage in 5G communications, electric vehicle electronic systems, and the military industry is also steadily growing. Data from the London Bullion Market Association (LBMA) shows that global industrial silver demand is expected to reach 650 million ounces in 2026, with the supply-demand gap widening to 50 million ounces. The fifth consecutive year of supply deficit provides solid fundamental support for silver prices.

Safe-Haven Inflows: Silver Favored Amid Global Uncertainty

Beyond its industrial attributes, silver's safe-haven value has also regained market attention. Ongoing geopolitical tensions, coupled with diverging monetary policies among major central banks, have led investors to seek diversified asset allocation. Thai investors are not only hedging with gold but also increasingly allocating to silver. The chairman of the Thai Gold Traders Association (TGTA) noted, "In the past, investors viewed silver merely as 'poor man's gold,' but now, with the popularity of ETFs and the maturity of the futures market, silver has become a balanced choice for both institutions and retail investors."

Notably, the latest report from the Bank of Thailand shows that foreign participation in Thailand's precious metals market has increased significantly, with foreign net long positions in silver futures tripling since July, mainly from European and American hedge funds. Analysts believe that silver's low price and high volatility make it a better hedge in asset portfolios.

Thailand Silver Market Structure Upgraded: Futures and ETFs Develop in Parallel

The vibrancy of Thailand's silver market is inseparable from improved infrastructure. Since TFEX launched silver futures in 2024, the contract specification (500 ounces per lot) has attracted domestic and international traders, significantly boosting liquidity. In 2026, TFEX further introduced silver options, providing more hedging tools. Meanwhile, the Securities and Exchange Commission (SEC) of Thailand relaxed regulations on precious metal ETFs, allowing SILVER ETF and similar products to expand rapidly.

The manager of SILVER ETF stated that the ETF tracks the LBMA silver price with a fee of only 0.3%, and its assets under management have exceeded 8 billion baht, making it one of the fastest-growing ETFs on the SET this year. Investor composition shows that the retail share rose from 30% at the end of last year to 50%, indicating that silver investment is becoming more widespread.

Market Outlook and Risk Warnings

Looking ahead to the second half of the year, multiple institutions maintain optimistic expectations for silver. Goldman Sachs, in its latest report, raised its 2026 average silver price forecast to $35 per ounce, citing industrial demand growth and linkage effects with gold prices. Local Thai analysts caution that silver prices have risen too sharply in the short term, with technical indicators showing overbought conditions; investors should be aware of correction risks. Additionally, silver's volatility is much higher than gold's, making it unsuitable for risk-averse investors.

Overall, Thailand's silver market is in a structural growth phase. Both industrial fundamentals and safe-haven demand provide long-term support for silver. Investors can participate through silver futures, ETFs, or related stocks, but must implement risk management and closely monitor global economic data and supply-demand dynamics.