Silver hits a new high, breaking through $64! A must-read guide for Taiwanese retail investors on 7 ETF options before entering the market

The silver market this time is really fierce. Just broke through the key psychological level of $60/ounce, and within a few days, it surged to $64.6, hitting a new all-time high. Since the beginning of the year, the increase has already exceeded 100%. This achievement not only significantly surpasses gold (which has risen about 40%) but also leaves the tech stocks in the NASDAQ behind.

Big investment banks like UBS are also getting uneasy, directly raising their 2026 target price to the $58-60 range, even hinting at a possible surge to $65. It sounds like silver is set to become the most lucrative asset in 2025.

The question is, how to participate in this wave? Many Taiwanese investors’ first thought is silver ETFs. After all, compared to carrying heavy silver bars home, just a few clicks on a securities app can buy them—much easier.

What is a silver ETF? Why choose it over physical silver bars?

Simply put, a silver ETF is a financial product that packages the silver price into a tradable security on an exchange. You don’t need to buy silver bars at a jewelry store or worry about theft or rust at home; just use your brokerage account to participate in silver price movements.

Compared to physical silver bars, what are the hassles? First, storage costs—safe deposit box rent, insurance, warehousing fees add up to 1-5% annually. Second, trading difficulties—buying at a jewelry store requires authenticity verification, with a 5-6% spread and commissions. Lastly, liquidity—if you need cash urgently, you might not be able to sell immediately.

Silver ETFs solve these issues. They track the silver price but eliminate all the physical management hassles. Low fees, easy entry and exit, no worries about oxidation or loss.

The 7 common silver ETFs compared: which one suits you?

The market offers a variety of silver ETFs, and choosing the wrong one could eat into your returns with fees. Take a look at this table:

SLV: The most popular choice worldwide

Launched in 2006, managed by BlackRock, with assets over $30 billion. It directly holds physical silver, stored by JPMorgan Chase. As a passive fund, it essentially buys silver and holds it, only selling a little when fees are paid.

Advantages: high tracking accuracy, large scale, strong credibility. Disadvantages: not the cheapest fee-wise, listed in the US, requires cross-border proxy or direct overseas account to buy.

AGQ and ZSL: Leverage traders’ choices

AGQ offers 2x leverage (to amplify gains), ZSL offers 2x inverse leverage (to hedge or short). Both use futures contracts to achieve their goals.

Important warning: These are only suitable for short-term trading. Due to compounding effects, long-term holding will be gradually eroded, and it’s not suitable to hold for several years.

PSLV: The dream for physical silver enthusiasts

Launched in 2010, with assets around $12 billion. Its unique feature is—you can request to convert fund units into physical silver to take home. For those wanting physical ownership but avoiding hassle, this is a compromise.

Be cautious: its trading price often deviates from net asset value, sometimes at a premium or discount, increasing buying and selling costs.

SLVP: Mining leverage play

This invests not in silver itself but in stocks of companies involved in silver exploration and mining. When silver rises, these companies often surge even more (leverage effect)—in 2025, SLVP’s tracked mining index rose 142%, far exceeding silver’s 103%.

The cost is higher volatility and exposure to company operational risks, policies, etc., making it riskier.

TPEX Silver(00738U): The most convenient option for Taiwanese investors

Founded in 2018, listed on Taiwan Stock Exchange. No proxy or remittance needed—buy directly with a Taiwan stock account. The fee is about 1%, slightly high, but extremely convenient. Tracks the Dow Jones Silver Index Futures.

The downside is its risk level is rated as “high volatility,” suitable for those who can tolerate fluctuations.

How can Taiwanese investors buy? Two main channels with pros and cons

Channel 1: Cross-border proxy trading (most popular)

Use domestic brokers (like Fubon, Cathay, Yuanta, Yuanta) to place orders with overseas brokers. The process is simple:

• Open a cross-border proxy account (online or in person)
• Choose TWD or foreign currency settlement
• Use the app to search for codes like SLV and place orders; many brokers support regular fixed investments

Advantages: regulated by the Financial Supervisory Commission, funds stay in Taiwan, tax issues handled by brokers, user-friendly Chinese interface.

Disadvantages: higher fees, limited target products.

Channel 2: Open an overseas broker account directly

Go to the US, UK, or other countries’ brokers to open an account, saving middleman costs.

• Online account opening (passport, ID, proof of address)
• Transfer USD (set up a designated account)
• Trade independently

Advantages: low or zero commissions, trade all global ETFs, support advanced features.

Disadvantages: English interface, handle remittance and tax filing yourself (US dividends are 30% withholding), funds abroad may cause complications.

Tax issues you must know

Buying Taiwan-listed silver ETFs is easiest—buying is tax-free, and selling incurs only 0.1% tax.

Buying US-listed ETFs is more complicated. Taiwan classifies overseas ETF transactions as “overseas income.” If total overseas income exceeds NT$1 million annually, it must be included in the basic tax calculation and taxed at 20% (after deducting NT$7.5 million exemption).

For dividends, the US withholds 30%, which can be claimed back via tax refund. But since most silver ETFs don’t pay dividends, this is less of a concern.

Silver ETFs vs futures vs mining stocks vs physical silver: who offers the highest returns?

2025 return ranking:

Silver futures > Mining stocks > Physical silver bars ≈ Silver ETFs

Futures leverage is large; if the direction is right, gains can double. But losses are also magnified, risking margin calls.

Mining stocks follow silver prices but also benefit from company growth, with a 142% increase in SLVP’s tracked index, far surpassing silver’s 103%. However, they are not pure silver exposure and are affected by operational risks.

Physical silver bars nominally rose 103%, but after premiums, storage, and selling costs, the actual gain is about 95-100%.

Silver ETFs track silver prices but deduct annual fees (0.4-1%), so net returns are slightly lower than silver’s spot. The advantage is that beginners can participate easily without worries of scams or liquidity issues.

Risk warnings: avoid these pitfalls

Silver is highly volatile. A 103% rise in 2025 sounds great, but historically, silver often crashes 40-50%. Be mentally prepared for short-term losses of half your investment.

Tracking errors. Futures-based ETFs incur costs from rolling over contracts, leading to returns lower than spot over the long term. Physical ETFs are more accurate but also have annual fees eating into about 0.4-0.5% of returns.

Currency risk. Buying US ETFs involves USD exchange rate fluctuations. Silver prices are also affected by geopolitical issues, solar energy demand, and central bank policies.

Don’t concentrate your holdings. Holding only one ETF is risky. Consider diversifying into SLV (stable) + TPEX Silver (convenient) or SLVP (leverage) combinations.

Summary

To participate in this silver rally, silver ETFs are indeed the most convenient tool. They eliminate physical management hassles, offer high liquidity, and are friendly to beginners.

But don’t forget, silver’s volatility far exceeds gold and stocks, and fees and tracking methods vary greatly among ETFs. It’s best to understand your risk tolerance and investment horizon first, then choose from SLV (long-term stability), TPEX Silver (Taiwan convenience), or SLVP (high returns). Regularly review market changes. Instead of blindly chasing highs, consider diversification and patience for holding.