Silver surges to a new high of $64.6! How should Taiwanese retail investors enter through dividend-non-paying ETF recommendations?

The silver market has indeed been fierce in this wave. Supported by multiple favorable factors such as the Federal Reserve’s rate cut expectations, tightening global silver supply, and inclusion in the US government’s critical mineral list, London spot silver broke through $60 per ounce on December 9, 2025, and subsequently reached a high of $64.6/oz, setting a new record. Recently, silver has stabilized above $60, with an astonishing increase.

Since the beginning of this year, silver has surged over 100%, becoming one of the most outstanding assets. In comparison, gold has risen about 40%, and the Nasdaq index about 20%. UBS investment bank has set the 2026 target price for silver at $58 to $60 per ounce, and believes that reaching $65/oz is not impossible.

Faced with such opportunities, many retail investors in Taiwan have begun to focus on silver investments, among which no-dividend ETF recommendations have become the most searched investment tools for beginners. Why? Because silver ETFs do not require concerns about storage, transportation, or verification like physical silver, and trading methods are the same as stocks, allowing quick and flexible market entry and exit.

Why choose silver ETFs? How do they differ from physical silver

Silver ETFs are investment funds that track the spot or futures prices of silver. Investors do not need to physically own silver to participate in gains from silver price fluctuations. These financial products are listed on exchanges, with trading processes similar to stocks, and can be bought and sold through brokerage accounts.

While physical silver investment offers a tangible sense of security, it also involves many hidden costs. First, storage fees—whether renting bank safes or entrusting professional warehouses, annual costs range from 1% to 5%. Second, high transaction costs—buying and selling involve premiums and commissions of 5% to 6%. Lastly, poor liquidity—selling quickly in urgent situations is difficult, and buyback prices at pawnshops lack transparency.

In contrast, silver ETFs convert physical assets into financial products, allowing investors to trade anytime via securities accounts without worrying about transportation, storage, or verification. Since they track silver prices or hold physical reserves, investors can stay close to market movements while enjoying higher liquidity.

Top no-dividend ETFs globally: Seven popular silver ETFs explained

There are many silver ETFs on the market. Here are the seven most popular ones for reference:

SLV (iShares Silver Trust)—The most well-known global silver ETF, launched by BlackRock in 2006, with a net asset value exceeding $30 billion. SLV directly holds physical silver, custodied by JPMorgan Chase. It adopts a passive management approach, not actively trading silver, but periodically selling small amounts to pay annual fees. Expense ratio is 0.50%, among the lowest in its category.

DBS (Invesco DB Silver Fund)—Tracks silver prices via COMEX silver futures, with an expense ratio of 0.75%. Suitable for investors wanting exposure to silver price movements through futures, but due to the nature of futures, there are costs associated with rolling over contracts, which may result in lower long-term returns compared to spot.

AGQ (ProShares Ultra Silver)—A leveraged futures ETF with 2x leverage, expense ratio 0.95%. Aims to achieve twice the daily performance of the Bloomberg Silver Index. Note that due to compounding effects and leverage decay, AGQ is only suitable for short-term trading and not for long-term holding.

ZSL (ProShares UltraShort Silver)—Provides 2x inverse leverage (-2x), expense ratio 0.95%. Designed for traders betting against silver, also only suitable for short-term trading; long-term holding can lead to losses due to compounding decay.

PSLV (Sprott Physical Silver Trust)—A closed-end fund launched in 2010, holding pure physical silver. Its main feature is that investors can redeem physical silver, suitable for long-term holders. Expense ratio is 0.62%, with assets around $12 billion. Be aware that trading prices often deviate from net asset value, forming premiums or discounts.

SLVP (iShares MSCI Global Silver and Metals Miners)—Invests in global silver mining companies, launched by BlackRock in 2012. Expense ratio 0.39%, below industry median, pays dividends semi-annually. However, historically, SLVP exhibits higher volatility, tracking errors, and wider bid-ask spreads, limiting its attractiveness.

Taiwan Silver ETF (00738U)—A domestic Taiwanese silver ETF established in 2018, tracking the Dow Jones Silver Excess Return Index via COMEX futures. Expense ratio 1%, rated as a “high volatility” product.

Two main purchasing channels for Taiwanese investors

Via Discretionary Trust—Most convenient

This is the preferred method for most Taiwanese investors to buy international silver ETFs. Through domestic brokers (such as Fubon, Cathay, Yuanta, Yuanta, etc.), investors can entrust overseas brokers to execute trades. The process is simple: open a discretionary trust account with a domestic broker → choose TWD or foreign currency settlement → place orders via app or web.

Advantages include regulation by the Financial Supervisory Commission, secured funds, tax handling assistance from brokers, and no need to transfer funds abroad. Disadvantages are higher handling fees and limited tradable products.

Direct account opening with overseas brokers—Lowest cost

Open an account online with overseas brokers (such as Interactive Brokers, IB, etc.) by preparing documents like passport, ID card, proof of address. After remitting funds, you can directly trade global ETFs.

Advantages include very low or zero commissions, the widest range of trading products, and support for advanced tools. Disadvantages include interfaces mostly in English, self-managed tax and remittance, 30% US dividend withholding tax, and more complex handling of fund security or inheritance issues.

Do I need to pay taxes when investing in silver ETFs?

Taiwanese silver ETFs: Buying is tax-free; selling incurs a 0.1% transaction tax, making tax matters straightforward.

Overseas silver ETFs: Considered overseas property transaction income, included in overseas income. If total overseas income ≤ NT$1 million annually, it is exempt from minimum tax; exceeding NT$1 million, the full amount is included in basic income and taxed at 20% after deducting NT$7.5 million exemption.

Comparing various silver investment tools: ETF vs physical silver bars vs futures vs mining stocks

Based on actual performance in 2025, silver futures yield the highest returns but also carry the greatest risk; silver mining stocks (e.g., SIL) increased about 142%, surpassing pure silver exposure; silver ETFs offer moderate returns with easier trading and lower risk, making them most suitable for beginners and small-cap investors.

Silver CFDs are also an option, combining ETF trading convenience with futures leverage, requiring less capital, with lower fees than futures, but with increased risk proportional to leverage.

Risks and precautions when investing in silver ETFs

1. Silver prices are far more volatile than gold and stocks—despite over 100% gains this year, history shows sharp corrections are common, and short-term losses can be significant.

2. Tracking error risk—futures-based ETFs incur costs from rolling contracts, potentially underperforming spot over the long term; physical ETFs are more accurate but have annual fees of 0.4-0.5% that erode returns over time.

3. Exchange rate and tax risks—overseas ETFs involve USD fluctuations and require handling overseas income tax filings.

4. Macro factors impact—silver prices are influenced by geopolitical events, industrial demand (solar, electronics), and central bank policies, making single-direction judgments risky.

Conclusion

Silver ETFs provide a convenient and efficient investment channel. Compared to the cumbersome costs of physical silver, ETFs resolve storage, transportation, and verification issues through securitization, while maintaining high liquidity and trading flexibility. For investors wanting to participate in silver markets without the burden of physical management, no-dividend ETF recommendations are undoubtedly the most practical choice.

However, investors should be aware of silver’s high volatility. Different silver ETFs vary significantly in management fees, tracking methods (leverage or direct physical holding). A diversified allocation strategy is recommended, avoiding over-concentration in a single product, and regularly reviewing market conditions and positions to ensure long-term stability.