How do Taiwanese investors choose when buying silver? A practical guide to seven popular ETF options

Gold prices hit a historic high in 2025 and remained strong into 2026. When many Taiwanese investors want to participate in this trend, the first question is often: how to buy silver? The simplest and most convenient answer is silver ETFs. Compared to the hassle and risks of physical silver, ETFs have become the mainstream tool for retail investors to participate in silver investment.

This guide will help you quickly understand the various options for buying silver and find the investment method that suits you best.

Why Are More People Choosing to Buy Silver ETFs?

Silver ETFs are investment funds that track the price of silver, allowing investors to participate in the silver market without holding physical silver. Compared to traditional physical silver investments that require storage and security, buying silver ETFs is more straightforward and offers higher liquidity.

Core advantages of silver ETFs:

First, they eliminate the biggest hassle of buying silver—storage and security. Physical silver requires paying for safe deposit boxes or professional storage fees, and keeping it at home risks oxidation, theft, or damage. Second, buying silver ETFs is as simple as buying stocks; investors can buy and sell anytime through a brokerage account, with liquidity far exceeding physical silver. Third, trading is transparent and convenient—no need to verify purity or authenticity at a silver shop, and no 5-6% bid-ask spreads.

The value of silver ETFs moves in sync with silver prices. If silver prices rise by 5%, the ETF’s value will also increase by about 5%; vice versa. Because of this, they provide an efficient way for those wanting exposure to silver prices without bearing the costs of physical management.

How Many Ways Are There to Buy Silver? What Are the Pros and Cons?

Before deciding to buy silver, it’s important to understand the main investment tools available. Here are five common ways for Taiwanese investors to buy silver:

Silver ETF: The Best Choice for Beginners

Advantages: Easy to buy and sell, high liquidity, no storage or insurance needed; no theft risk; relatively low fees (0.4-1%); suitable for beginners, quick market entry and exit.

Disadvantages: Fees can erode long-term returns; no physical silver ownership; potential tracking errors (especially with futures-based ETFs).

Ideal for: Investors with moderate risk tolerance, small to medium capital, seeking convenient trading.

Physical Silver Bars: For Those Who Want Certainty

Advantages: Actual ownership, tangible, provides crisis security; no counterparty risk, direct control of assets; high privacy.

Disadvantages: Storage costs high (annual fee 1-5%); theft/loss risk; low liquidity, buy/sell spreads of 5-6%; transportation and verification hassles.

2025 net return: About 95-100% (silver rose approximately 103%, but after premiums, storage, and selling costs, net gains are lower).

Ideal for: Long-term investors, those seeking physical asset security.

Silver Futures: For Advanced Investors Seeking High Returns

Advantages: High leverage (small capital controls large positions), potential amplified returns; long/short options, flexible hedging; no storage issues.

Disadvantages: High risk, leverage amplifies losses; complex, requires monitoring expiry/rollover; high commissions and margin requirements.

2025 returns: Depends on leverage and direction; with correct timing, 2x leverage can yield over 200%, but wrong bets can lead to magnified losses.

Ideal for: Experienced investors with high risk tolerance seeking high returns.

Silver Mining Stocks: Indirect Investment with Leverage

Advantages: Potential to amplify silver price gains; diversification; easy trading; some pay dividends.

Disadvantages: Not pure silver exposure, affected by company operational risks; more volatile; requires stock research.

2025 return: About 142% (e.g., SIL ETF), outperforming silver price gains.

Ideal for: Growth-oriented investors willing to accept company risks.

Silver CFDs: Leverage Tools Suitable for Beginners

Advantages: Easy to trade, high liquidity; support leverage trading for quick entry/exit; long/short options; lower fees than futures.

Disadvantages: No physical silver ownership; risk increases with leverage.

Ideal for: Beginners, small capital, wanting to experience leverage trading.

Seven Popular Silver ETF Products Comparison

How to Choose the Right Product for Yourself?

If you are a beginner with limited funds: Choose SLV. It’s the largest, most transparent silver ETF, managed by BlackRock, with ample physical reserves, lowest fees, and minimal tracking error.

If you seek high growth and can tolerate volatility: Consider mining ETFs (like SLVP) or leverage products (like AGQ for short-term). Be aware that SLVP has wider bid-ask spreads and tracking errors, so review regularly.

If you want to short or hedge: Use inverse leverage products like ZSL, but only for short-term trading—unsuitable for long-term holding.

If you want the most convenient way to buy silver in Taiwan: Choose 00738U (Silver Futures ETF). As a Taiwan-listed ETF, it offers the simplest tax treatment and trading process, though with higher fees (around 1%) and tracking costs.

How Can Taiwanese Investors Buy Silver ETFs? Three Main Methods

Method 1: Discretionary Trust (Foreign Securities Account) — Most Convenient

Most Taiwanese investors buy via domestic brokers (Fubon, Cathay, Yuanta, Fubon, etc.) who execute trades through overseas brokers.

Steps:

• Open a discretionary trust account with a domestic broker (online or in person)
• Prepare ID, bank account, and necessary documents
• Choose settlement in TWD or foreign currency
• Use broker’s app or website to place orders, search ETF codes (e.g., SLV)
• Many brokers support regular fixed investments

Pros: Regulated and safe; tax handled by broker; funds stay in Taiwan; Chinese interface; customer support.

Cons: Higher commissions (around 0.5-1%); limited ETF choices; slower execution.

Method 2: Directly Open an Overseas Broker Account — Lowest Cost

Trade directly via overseas brokers (Interactive Brokers, Charles Schwab, etc.), saving middleman fees.

Steps:

• Open an account online with an overseas broker
• Provide passport, ID, proof of address, bank info
• Transfer TWD to USD via wire transfer (set up linked accounts)
• Use platform to buy/sell directly with codes

Pros: Very low fees (many no commission or fixed low fee); wide product range; advanced tools.

Cons: Mostly English interface; handle currency transfer and taxes yourself; funds are held abroad; potential complications with inheritance or estate issues.

Method 3: Taiwan-listed ETFs — Most straightforward

Buy Taiwan-listed silver ETFs (like 00738U) directly through local brokers.

Pros: Same as buying stocks; easiest process; tax treatment is simple; no currency transfer needed.

Cons: Limited choices; higher fees; liquidity may be lower than overseas ETFs.

Tax and Cost Considerations

Taiwan-listed silver ETFs: Buying is tax-free; selling incurs a 0.1% transaction tax, similar to stocks.

Overseas ETFs: Considered overseas property transactions; taxed as overseas income.

• If total overseas income ≤ NT$1 million/year, exempt from minimum tax.
• If > NT$1 million, all counts toward taxable income.
• Tax rate: After deducting NT$7.5 million exemption, excess taxed at 20%.

Dividends and withholding tax: Most commodity-based ETFs do not pay dividends; if US dividends occur, 30% withholding applies, and Taiwan investors can file for tax refunds.

Risks and Practical Tips

While ETFs offer liquidity and convenience, risks are significant:

Risk 1: Extreme price volatility

Silver prices are much more volatile than gold or stocks. In 2025, silver surged over 140%, but history shows sharp corrections. End-of-2025 margin adjustments caused an 11% intraday flash crash, leading to substantial losses for some investors. Silver suits high-risk tolerance investors.

Risk 2: Tracking errors

Futures ETFs may underperform physical silver over time due to roll costs. Physical ETFs have annual fees (~0.4-0.5%) that eat into returns.

Risk 3: Currency and geopolitical risks

Overseas ETFs are exposed to exchange rate fluctuations. Silver prices are also affected by geopolitical tensions, industrial demand (solar, electronics), and monetary policies.

Practical advice:

1. Start small, especially for beginners; consider regular fixed investments to average costs.
2. Diversify holdings; avoid over-concentration.
3. Regularly review your positions and adjust based on market changes and risk appetite.
4. Be cautious with leverage products like AGQ and ZSL—they are suitable only for short-term trading, not long-term holding, due to decay and compounding effects.
5. Understand tax and costs comprehensively—compare discretionary trust, overseas accounts, and Taiwan ETFs.

Conclusion

From an asset allocation perspective, buying silver ETFs is an effective way to participate in silver markets. It eliminates the hassle of physical storage, offers high liquidity, and is suitable for beginners and small investors.

However, different ETFs vary significantly in management fees, tracking methods, and leverage. The key is to choose products and channels aligned with your risk tolerance, investment horizon, and capital. Regularly review your investments and market conditions to manage risks effectively while participating in silver trading.