Investment Opportunities Behind Silver's New High: A Guide for Taiwanese Investors

Silver Prices Break New Records: Why Is Now the Time to Pay Attention?

The silver market in 2025 is experiencing an astonishing rally. Driven by multiple bullish factors, the London spot silver price broke the $60 per ounce mark on December 9, and later surged to a historic high of $64.6/oz.

How strong is this rally? The numbers tell the story—since the beginning of the year, silver has gained over 100%, significantly surpassing gold’s nearly 60% increase, and leaving tech stocks, represented by the Nasdaq Composite Index, behind by about 20 percentage points. Expectations of Federal Reserve rate cuts, global supply tensions, and the official inclusion of silver in the US critical mineral list have all contributed to this upward trend.

International investment bank UBS even raised its target price for silver in 2026 to $58–$60/oz, hinting at the possibility of reaching $65/oz. Against this backdrop, many Taiwanese investors are starting to consider: what is the most convenient and effective way to participate in this silver investment wave? The answer lies in silver ETFs.

Silver ETFs: Combining Financial Convenience with Silver Price Movements

A silver ETF is essentially an investment fund that tracks the price of silver, allowing you to enjoy the gains and losses of silver prices without physically owning silver. Simply put, it’s like a stock listed on an exchange—you can buy and sell anytime through your brokerage account.

The basic operation logic

The goal of an ETF is to replicate the performance of the silver market. To achieve this, issuers usually take one of two approaches: directly holding physical silver bars or indirectly tracking silver prices through derivatives like futures contracts.

For example: if silver prices rise by 5%, the net asset value (NAV) of the silver ETF will also increase by about 5%; and vice versa. This close tracking allows investors to precisely grasp silver market trends without the hassle of storing physical metals.

Why choose ETFs over physical silver?

Buying physical silver sounds solid, but the practical operation is far more complicated than expected. First, storage issues—whether renting a bank safe deposit box or entrusting professional vaults, annual fees are incurred; storing at home raises concerns about oxidation, theft, or damage.

Trading is also more complex. You need to find reputable silver shops or precious metals dealers, pay a 5-6% spread, and possibly spend money on purity and authenticity testing. When cashing out quickly, buyback prices at silver shops are often opaque, and liquidity is far inferior to financial products.

In contrast, silver ETFs financialize physical assets, allowing investors to trade easily through regular securities accounts, with vastly higher flexibility. You can still track silver price movements accurately while avoiding the hassle of transportation and storage.

What Silver ETFs Are Available? Key Players Fully Reviewed

In-depth analysis of major popular funds

SLV—The Most Recognized Global Choice

Launched in 2006, SLV remains the benchmark for silver ETFs. Managed by asset management giant Blackrock, it now manages over $30 billion. Its core holdings are physical silver, stored by JPMorgan Chase, with a passive management strategy—buying and selling only when necessary for operational costs, not for profit.

This design makes SLV the most direct tracker of the London LBMA silver benchmark price, ideal for long-term investors seeking stability and simplicity.

AGQ—Leveraged Aggressive Tool

Launched by ProShares in 2008, AGQ offers 2x leverage, aiming to double the daily returns of the Bloomberg Silver Subindex. This means a 10% rise in silver could lead to a potential 20% increase in AGQ, and vice versa.

However, caution is essential—due to leverage and futures use, AGQ’s value gradually erodes over time because of compounding effects and rollover costs. It is absolutely not suitable for long-term holding and should only be used for short-term trading.

ZSL—Hedging Tool for Bearish Silver

If you believe silver prices will decline, ZSL provides 2x inverse leverage, allowing you to profit from falling prices. Similarly, this high-risk instrument is only suitable for short-term traders and experienced investors.

PSLV—Unique Closed-End Structure

Established in 2010, PSLV uses a closed-end fund structure with a fixed number of units, and its trading price is determined by market supply and demand. This means its share price can trade at a premium or discount to its net asset value (NAV), unlike traditional open-end ETFs.

A key feature is that investors can redeem ETF units for physical silver, making it suitable for those with long-term holdings and physical needs. Its assets are approximately $12 billion.

SLVP—Leverage on Mining Stocks

Launched by Blackrock in 2012, SLVP invests in major publicly traded silver exploration and mining companies. The logic is: when silver prices rise, these miners often outperform (leverage effect).

However, SLVP exhibits higher volatility than pure silver tracking tools, with larger tracking errors, frequent component adjustments, and wider bid-ask spreads. Historically, it performed remarkably during silver rallies (about +142% in 2025), but its internal risks are higher, requiring investors to tolerate greater fluctuations.

TAIEX Silver Futures—Local Option

Established in 2018, this Taiwan-listed product tracks the Dow Jones Silver Excess Return Index via COMEX futures. Issued at NT$20, opening at NT$19.86 on debut. It does not pay dividends and is rated as “high volatility.”

Three Ways to Buy Silver ETFs: Which Is Best for You?

Taiwanese investors mainly have three options to participate in silver ETFs, each with pros and cons.

Method 1: Discretionary Trust—The Safest Traditional Approach

This is the mainstream method for Taiwanese investors to access overseas silver ETFs. You entrust domestic brokers (Fubon, Cathay, Yuanta, Yuanta, etc.) to execute trades with overseas brokers.

Steps:

1. Open a discretionary trust account with a domestic broker (online or in person, requiring ID, bank account, etc.)
2. Choose settlement in TWD or foreign currency
3. Use broker’s app or website to search for codes like SLV and place orders; many brokers support regular fixed investments

Advantages: Regulated by the Financial Supervisory Commission, safe and reliable; tax reporting handled by the broker; funds stay in Taiwan without international remittance Disadvantages: Higher transaction fees; limited trading options based on broker partnerships

Method 2: Opening an Overseas Broker Account—The Lowest-Cost Self-Directed Path

More advanced investors open accounts directly with foreign brokers, saving intermediary fees and gaining cost and speed advantages.

Steps:

1. Register online with an overseas broker (prepare passport, ID, proof of address, bank info)
2. Transfer USD from Taiwanese bank accounts (set up designated accounts)
3. Trade via app or website, searching for codes like SLV

Advantages: Low or zero commissions; global trading options; supports advanced tools like options, margin trading Disadvantages: Mostly English interfaces; handle remittance and tax issues yourself; 30% withholding tax on US dividends, complex refund process; funds are overseas, with no Taiwanese legal protection for inheritance or safety

Method 3: Silver CFDs—Flexible Alternative Between the Two

Silver CFDs (Contracts for Difference) are an emerging option. They combine ETF trading convenience with futures leverage, requiring less capital and offering lower fees, especially suitable for beginners.

Tax Planning: Know Your Tax Obligations

Investing in silver ETFs involves tax considerations, which vary depending on the listing location.

Taiwan-listed silver ETFs

No tax on purchase; 0.1% transaction tax on sale. Simplest tax treatment.

Overseas-listed silver ETFs

More complex. Gains from US silver ETFs are considered overseas property transaction income, taxed as overseas income.

Key calculation logic:

• Tax exemption threshold: Overseas income ≤ NT$1 million annually is exempt from minimum tax
• Exceeding threshold: All is included in basic income (including overseas dividends, interest, etc.), minus NT$7.5 million special deduction; the excess is taxed at 20%

The special deduction is a crucial concept—each taxpayer has a fixed NT$7.5 million exemption, and only amounts exceeding this are taxed, especially relevant for those with multiple overseas income sources.

Example: If total overseas income is NT$2 million (including ETF gains, dividends), after deducting NT$1 million exemption, NT$1 million is included in basic income. After deducting the NT$7.5 million special deduction (if unused elsewhere), it remains tax-free. But if total overseas income reaches NT$8 million, the NT$0.5 million over the exemption is taxed at 20%.

Comprehensive Comparison of Silver Investment Options: ETF vs Physical Silver Bars vs Futures vs Mining Stocks vs CFDs

The final choice depends on your risk tolerance, capital size, and time horizon.

Data shows futures and mining stocks perform best in 2025 but with the highest risks. Silver ETFs, while offering lower returns, are more suitable for newcomers and small investors due to their simplicity, no storage, and manageable risk.

Risks and Precautions for Silver ETF Investment

All investments carry risks, and silver ETFs are no exception.

First, silver prices are far more volatile than gold and stocks. Although up over 100% in 2025, history shows sharp corrections are common, which can lead to significant short-term losses. Investors must have sufficient risk tolerance.

Second, tracking errors should not be underestimated. Futures-based ETFs are affected by rollover costs, potentially underperforming spot prices over time; physical-backed ETFs have annual fees (~0.4-0.5%) that gradually erode gains.

Third, overseas ETFs involve currency and tax variables. Silver prices are also influenced by geopolitical events, industrial demand (solar, electronics), and global monetary policies—factors to consider.

Fourth, ETF designs vary significantly. Some use leverage, some hold physical silver, others track miners’ stocks; each has distinct risk profiles. Deep understanding before investing is essential.

Final Thoughts: Find Your Own Silver Investment Strategy

The surge in silver prices has attracted attention, but investment decisions should be rational, not driven by hype. From an asset allocation perspective, silver ETFs are effective tools to participate in the precious metals market via securities, avoiding the hassle of physical storage while maintaining high liquidity and trading convenience.

However, investors should also recognize: silver prices are highly volatile, influenced by industrial supply/demand and market sentiment, and different ETFs vary in management fees, tracking methods, and risk characteristics.

A recommended approach is diversification, avoiding over-concentration in a single product, and regularly reviewing market changes and adjusting positions. Whether choosing discretionary trust, direct account opening, or CFD trading, the key is aligning with your risk appetite and investment goals—rational investing will help you profit steadily in this silver wave.