Silver prices surge fiercely! Master the complete ETF investment guide in one article—how should Taiwanese retail investors choose?

Silver prices continue to soar, creating the most impressive gains in over twenty years. Driven by the Federal Reserve’s rate cut cycle, global supply shortages, and silver being included in the US critical mineral list, London spot silver prices reached over $60 per ounce on December 9, 2025, and even hit a historic high of $64.6/oz.

Looking at this year’s overall performance, silver has gained over 100%, far surpassing gold’s increase of more than 60%, and significantly exceeding the approximately 20% rise of the Nasdaq Composite Index. International investment banks like UBS are optimistic about the future, setting the 2026 silver target price between $58 and $60 per ounce, with the possibility of soaring to $65/oz.

In the face of this silver frenzy, Silver ETFs have become the main channel for retail investors to participate. Compared to the inconveniences of physical silver, ETFs offer quick trading, high liquidity, and are more suitable for ordinary investors. This article will provide an in-depth understanding of various silver ETFs, their differences, purchasing methods, and how to choose the right investment tool for yourself.

What is a Silver ETF? Why Should You Pay Attention

A silver ETF is essentially an investment fund that tracks the price of silver, allowing you to participate in silver price movements without holding physical silver. Just like buying stocks, you can buy and sell ETF units anytime during trading days, enjoying a simple and efficient investment experience.

Compared to the hassle of storing physical silver, the advantages of ETFs are obvious. You don’t need to worry about storage costs, theft, or oxidation risks, nor do you need to go to a jewelry store for appraisal. The trading process is straightforward and transparent. For investors who want to participate in silver price movements but do not want the burden of managing physical assets, ETFs are the most convenient choice.

How do ETFs track silver prices?

Most silver ETFs hold physical silver bars directly or use COMEX futures and derivatives to ensure the fund’s value moves in sync with silver prices. If silver rises by 5%, the ETF’s value will also increase by about 5%; conversely, if silver falls, the ETF will decrease accordingly. This tracking mechanism allows you to accurately grasp the trend of silver prices.

Physical silver vs. ETFs, which one should you choose?

Physical silver indeed offers a psychological advantage of “owning real assets,” but the practical operation has high barriers:

Problems with physical silver:

• Storage costs: safe deposit box rent of 1-5% annually, or high costs for entrusted vault storage
• Complex transactions: need to find reputable silver shops or precious metals dealers, with 5-6% spread and appraisal fees
• Poor liquidity: difficult to quickly liquidate in urgent cash needs, with price discrepancies across regions
• Transportation hassle: large transactions involve complicated procedures like shipping and verification

Convenience of silver ETFs:

• Easy account opening: place orders online, as quick as buying stocks
• Low costs: annual management fees of 0.4-1%, much lower than physical storage costs
• High liquidity: trade anytime during market hours, no regional restrictions
• No worries: no need for self-storage, verification, or transportation

From efficiency and cost perspectives, silver ETFs are more suitable for modern investors.

A Comparison of 7 Silver ETFs: Features, Fees, Suitable Investors

Deep Dive into Each Product

SLV: The Global Leader, Most Secure Physical Silver ETF

This is the largest silver ETF, launched by BlackRock in 2006. Its core advantage is direct holding of physical silver, custodied by JPMorgan Chase, ensuring asset safety. The fund adopts a passive management style, with infrequent buying and selling, only periodically selling small amounts of silver to cover operational costs. This design ensures that silver price fluctuations are almost fully reflected in the fund’s value.

SLV also boasts high transparency; investors can check custody silver audit reports anytime, ensuring maximum confidence.

AGQ and ZSL: Leverage Tools for Precise Traders

AGQ offers 2x long leverage, ZSL offers 2x inverse leverage. These products are only suitable for short-term trading because leverage funds, due to compounding effects and daily rebalancing, can produce significant tracking errors over the long term, often resulting in returns that deviate from expectations. In short, if you want to hold long-term, these may cause losses.

PSLV: Special Structure, Top Choice for Long-Term Allocation

Unlike typical ETFs, PSLV adopts a closed-end structure with fixed issuance units, and its market price can trade at a premium or discount. Its unique advantage is the ability to redeem physical silver upon request—if you accumulate enough units, you can exchange them for physical silver.

With assets around $12 billion, PSLV is a leading closed-end silver fund, suitable for investors with long-term holding plans and willingness to accept price fluctuations.

SLVP: Mining Exposure, High Growth but High Volatility

SLVP invests in major global silver mining companies, providing a leverage effect—when silver prices rise, mining profits tend to grow more than silver price increases. In 2025, SLVP rose about 142%, significantly outperforming silver’s 103% increase. However, this comes with higher volatility and dependence on company operations and policies.

Note that SLVP has larger tracking errors and wider bid-ask spreads, making it less suitable for lazy investors.

期元大道瓊白銀(00738U): Listed in Taiwan, a Local Choice

This is the only silver futures ETF listed in Taiwan, launched in 2018. Its advantage is trading directly in TWD, avoiding exchange rate risk, with a transaction tax of only 0.1%. The downside is that it tracks futures indices, which involve rollover costs and tracking errors, and it is rated as “high volatility.” Suitable for Taiwanese investors who prefer operating in a familiar environment but must be prepared for significant fluctuations.

How Can Taiwanese Investors Buy? Two Main Routes

Route 1: Discretionary Trust (Chinese interface, funds stay in Taiwan)

Using Taiwanese brokers to place orders with overseas brokers is the most common method for retail investors.

Steps:

1. Open a discretionary trust account with local brokers (e.g., Fubon, Cathay, Yuanta, Fubon)
2. Choose TWD or USD settlement
3. Place orders via broker app, input ETF code directly

Advantages: Regulated by Financial Supervisory Commission, transparent fees, automatic dividend tax handling, funds stay in Taiwan, Chinese support Disadvantages: Higher fees than overseas brokers (30-50%), limited product selection

Route 2: Direct Account with Overseas Brokers (Lower fees, richer products)

Open an account directly on overseas broker platforms (e.g., Interactive Brokers, Futu NiuNiu), saving intermediary costs.

Steps:

1. Complete online registration, upload passport, ID, proof of address
2. Verify identity and fund source
3. Transfer USD via TWD remittance to designated account
4. Place orders via app

Advantages: Very low or zero commissions, access to global ETFs, margin trading, advanced tools Disadvantages: English interface, tax reporting required, more complex in terms of fund security and inheritance

Do You Need to Pay Tax on Silver ETF Investments?

Taiwan-listed silver ETFs (e.g., 00738U): Buying is tax-free; selling incurs a 0.1% tax, straightforward.

Overseas-listed silver ETFs (e.g., SLV, PSLV): For Taiwanese investors, trading gains are considered overseas property transaction income.

Tax thresholds:

• Total overseas income ≤ NT$1 million: no minimum tax
• > NT$1 million: all included in basic income

Exceeding NT$7.5 million exemption, 20% tax applies to the excess.

In practice, since most silver ETFs do not distribute dividends (product-type funds), tax issues are relatively simple. However, if there are dividend income or exchange rate gains, proper records should be kept for declaration.

Top 5 Ways to Invest in Silver: A Comparative Overview

Overall, silver ETFs, despite a 2025 return slightly below silver’s actual price increase, offer the best balance of risk and convenience, making them especially suitable for beginners and limited capital investors.

5 Major Risks in Silver ETF Investment

Risk 1: Silver Price Volatility Exceeds Expectations

Silver is highly volatile compared to gold and stocks. Although the 2025 rally exceeded 100%, historical corrections of 30-40% are common. Short-term investors must be psychologically prepared for large swings.

Risk 2: Tracking Errors and Cost Erosion

Futures-based ETFs incur rollover costs, which can cause long-term returns to lag behind spot prices. Physical ETFs are more accurate but have annual fees of 0.4-0.5%, which accumulate over time. Leveraged funds, due to daily rebalancing, can produce significant deviations over the long run.

Risk 3: Currency and Tax Issues for Overseas Investments

Investing in USD-denominated ETFs exposes you to USD exchange rate fluctuations. US withholding tax on dividends (though many silver ETFs do not pay dividends) can be up to 30%, requiring self-declaration for tax refunds.

Risk 4: Market and Policy Risks

Silver prices are affected by geopolitical events, industrial demand (solar, electronics), and central bank policies. Sudden policy changes or industry downturns can cause sharp declines.

Final Advice for Silver ETF Investment

As a tool to participate in precious metals markets, silver ETFs offer securities-like features, high liquidity, and low barriers. Compared to physical silver’s inconveniences, they provide more flexible and efficient allocation.

However, before investing, you must recognize:

First, assess your risk tolerance. Silver’s volatility is high; it is not suitable for risk-averse investors for short-term participation.

Second, choose products aligned with your strategy. For long-term holdings, consider SLV or PSLV; for short-term trading, avoid leveraged products; Taiwanese investors may consider 00738U to hedge currency risk.

Third, diversify your portfolio to avoid over-concentration.

Fourth, review your holdings regularly. Market dynamics change rapidly; adjust your strategy and allocations accordingly.

Silver remains promising, but make rational decisions with risk management in mind. Choosing suitable ETF tools and clarifying your investment goals are key to long-term stability.