Silver has long played second fiddle to gold — but in 2025, smart investors are paying close attention to this often-overlooked precious metal. Whether you’re concerned about inflation, seeking a tangible asset outside the traditional banking system, or looking to get into precious metals without breaking the bank, silver offers some compelling benefits.
In this guide, we’ll walk you through solid reasons why buying silver today makes more sense than ever.
Table of Contents
- What Makes Silver a Valuable Asset?
- Silver as a Hedge: How It Protects You from Inflation and Currency Debasement
- Why Silver Is Still the “Undervalued” Metal in 2025
- Industrial Demand Is Booming: Silver in Green Energy, EVs & Tech
- Silver Supply Deficit: Why It Matters in 2025
- Silver vs Gold: Which Should You Buy First?
- Physical Silver vs ETFs: Which Should You Own?
- How to Buy Silver in New Zealand Safely
- How and Where to Store Silver: Safety, Security and Sovereignty
- Common Silver Investing Mistakes to Avoid
- FAQs
- Final Thoughts
- Ready to Take the Next Step?
Estimated reading time: 7 minutes
What Makes Silver a Valuable Asset?
Silver has long been used as money, a store of value, and a medium of exchange. It’s tangible, scarce, and globally recognised. Like gold, silver is no one else’s liability — it carries no counterparty risk when held physically.
But unlike gold, silver also plays a crucial industrial role. This dual demand makes silver a unique hedge and opportunity.
Silver as a Hedge: How It Protects You from Inflation and Currency Debasement
Silver acts as a hedge against inflation and fiat currency debasement. When central banks expand the money supply, the purchasing power of paper currencies falls. Physical silver — like gold — holds intrinsic value and has no counterparty risk.
In countries that have experienced high inflation (like Argentina or Zimbabwe), silver and gold have remained stores of value when local currencies collapsed.
If you’re concerned about rising debt, central bank digital currencies (CBDCs), or continued fiat devaluation, holding silver can provide an essential layer of financial protection.
Why Silver Is Still the “Undervalued” Metal in 2025
Despite recent price gains, silver remains historically undervalued.
As of late 2025, the Gold to Silver Ratio (GSR) — how many ounces of silver it takes to buy one ounce of gold — sits around 85, well above the historical average of 50–60.
Learn more: Gold Silver Ratio 2025: Is Silver Undervalued Again?
What If the GSR Returned to Historic Levels?
At a gold price of NZ$6,900, silver could rise to NZ$115/oz if the GSR fell to 60 — and even higher if it dropped to 30 or 15.
Why is silver so cheap compared to gold?
The price of silver is often influenced by industrial demand, market liquidity, and investor attention. While gold gets the headlines, silver quietly builds value — and historically, it plays catch-up fast once a bull market kicks in.
In short, silver’s low price relative to gold may not reflect its true value — and that spells opportunity.
Inflation-Adjusted Silver Price: Still Below Historic Highs
Despite silver recently breaking US$50 in nominal terms, it’s still far below its 1980 peak in inflation-adjusted dollars. This suggests that silver may have significant upside still ahead.
Industrial Demand Is Booming: Silver in Green Energy, EVs & Tech
Silver isn’t just a monetary metal. It’s also a critical industrial component in:
- Solar panels (20g per panel)
- Electric vehicles (25–50g per EV)
- Electronics, medical tech, and AI-driven devices
Will industrial demand drive silver prices higher?
It’s likely. As the world moves toward electrification and decarbonisation, demand for silver is surging — and supply is struggling to keep up.
This dual role (monetary + industrial) gives silver a unique edge.
Silver Supply Deficit: Why It Matters in 2025
Recent data from the Silver Institute shows a deepening and ongoing physical silver supply deficit — for the fifth year in a row.
Learn more: Silver Shortage in London – 2025
Silver vs Gold: Which Should You Buy First?
Many new investors ask: Should I buy gold or silver first?
The answer depends on your goals. Gold is less volatile and better suited for storing large amounts of wealth. Silver, on the other hand, is more affordable and tends to outperform gold in bull markets due to its smaller market size.
If you’re starting out, silver offers an accessible entry point into precious metals — especially while it’s still historically undervalued relative to gold.
Learn more about why silver could have more upside than gold: Will Silver Ever Be Worth More Than Gold?
Physical Silver vs ETFs: Which Should You Own?
When you buy physical silver (bars or coins), you own a tangible asset with no counterparty risk. That’s not the case with:
- Silver ETFs or funds (paper promises)
- Silver mining shares (which carry business risk)
In a market disruption, having physical control of your metal could make all the difference.
How to Buy Silver in New Zealand Safely
Buying silver in New Zealand is straightforward — but you want to make sure you’re dealing with a reputable dealer and taking delivery securely.
At Gold Survival Guide, we’ve helped thousands of Kiwis buy silver since 2010. You can choose between:
- 1oz coins (great for liquidity and recognisability)
- Bars (better for lower premiums on large orders)
- Vault storage or home delivery
Request a live silver quote here
Read our full guide to buying silver
Learn more: What Type of Silver Bar Should I Buy? – Ultimate Guide
How and Where to Store Silver: Safety, Security and Sovereignty
Silver is bulkier than gold, which makes secure storage a key consideration — especially for larger holdings.
Your options:
- Home storage – discreet, accessible, but requires a safe and insurance.
- Allocated vault storage – stored securely under your name, accessible by appointment.
- Offshore storage – useful for those seeking diversification across jurisdictions.
You want to maintain sovereign control of your assets — so avoid pooled or unallocated storage programs where you don’t actually own specific bars.
Common Silver Investing Mistakes to Avoid
Even experienced investors can make mistakes with silver. Here are a few to avoid:
- Buying collectible or numismatic coins with high premiums (stick to bullion)
- Overexposing to paper silver like ETFs, thinking it’s “the same” as physical
- Storing large amounts at home without adequate protection
- Panic-selling during volatility (silver moves fast — both ways)
Like any long-term asset, success with silver comes from patience, education, and strategic buying.
FAQs
Yes — silver remains historically undervalued, and demand is increasing. It’s an excellent hedge against inflation and a smart long-term play.
Silver is more volatile, meaning it can rise (or fall) faster than gold. It’s often considered a “high beta” version of gold — great for strategic timing or diversifying a gold-heavy portfolio.
If the GSR falls to historic norms and gold continues climbing, silver above NZ$100 is not just possible — it’s mathematically supported.
Not likely. While gold was confiscated in 1933 under Executive Order 6102, silver coins remained legal tender. A year later, Executive Order 6814 required industrial silver and bars (not coins) to be sold back to the U.S. Treasury. Today, such a move is widely seen as unlikely in modern democracies.
Experts suggest 10–20% of your total portfolio in precious metals. Your allocation to silver vs gold depends on your risk tolerance and view of global trends.
Final Thoughts
Silver’s dual demand, historical undervaluation, and ongoing physical shortages point to a compelling case in 2025. It’s a tangible, portable, globally recognised asset that protects wealth and may offer serious upside from here.
If you’re considering adding silver to your portfolio — or just diversifying out of fiat — now could be the ideal time.
Ready to Take the Next Step?
- Request a quote for silver coins or bars now
- Subscribe to our price alerts
- Explore our best-value silver deals
Editors Note: This post was first published 1 October 2012. Fully rewritten 28 October 2025.
If you can think of any other reasons as to why to buy silver, then please share them with us and other readers by leaving a comment below.
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I think that you should address the issue of Kiwisaver. Is it better or should you just buy Gold/Silver. I am retired but my children are not.
I know that if you were in a kiwi saver type fund overseas our Govt takes 100% of the proceeds. Thus there is no reason whatsoever for anyone currently overseas and planning to come here, to invest in such schemes.
The issue is much more complex here. If you buy gold /silver every month will you end up better off than placing your hard earned in a kiwisaver fund bearing in mind taxes and loss of freedom of choice!
I would like to make a comment regarding Maurices message on Kiwisaver. As a Kiwisaver participant, I recently did some research on Kiwisaver funds, I am also an investor in Precious metals with diverse holdings in stocks and physical metals. I was keen to find a fund that had precious metals as part of a portfolio. The only provider with a % of commodities in a fund is AXA Kiwisaver Growth fund of which make up 5% of the fund with 11% of that in Gold futures and 3.8% made up in silver the rest is made up with various other commodities. With the future prices in silver and gold set to sky rocket, I believe this fund will outperform the rest. I don’t however have information on how secure these investments are. I hope this helps.
Hi Chris,
Thanks for sharing your thoughts. That’s the only fund we’d heard of that was remotely invested in precious metals too.
Of course being only 5% commodities and only a sliver in gold and silver, it will be as or even more important how the rest of the fund investments perform. And it is invested in futures by the sounds of it, so there will of course be counter-party risk involved.
We’re a long way from being Kiwisaver experts so not sure if we can offer too much else of value at this stage.
Thanks for your comments anyway Maurice and Chris.
Glenn.
I would like to put my kiwi saver into silver bullion as well…
@Heiko, We imagine a few people would like to do the same. Unfortunately there are no precious metals funds in Kiwisaver that we know of. Last we looked there was only one that invested in commodities and this had only a tiny sliver in gold. Maybe some other readers have come across other options but we haven’t to date.
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Bought 15 ounces of gold in 03 & 04, at close to 400 US per. bought some silver also. Could have bought over twice that much, and wish I had. No big time here, but sold it the latter half of 2011 and made 358% profit. Just goes to show what the everyday person can do with a little patience. Once you’ve made money at it, you can smell it coming. The aroma is very strong these days. Even if you only have five or ten thousand, I would suggest that anybody buy as much as they can get their hands on.
Nice work in timing the purchase and the sale! Odds are that right now is not that dissimilar to 2003/04 in terms of time to buy.
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