Silver prices soar to new heights! How to choose among the seven popular silver ETFs? A guide for Taiwanese retail investors

Silver Prices Hit Record Highs, Investment Boom Sweeps In

London spot silver is experiencing an unprecedented rally. Supported by expectations of Federal Reserve rate cuts, global supply tightness, and silver being officially included in the US critical minerals list, the silver price broke the psychological barrier of $60 per ounce on December 9, 2025, and continued to rise to a historic high of $64.6/oz.

So far this year, silver has surged over 100%, becoming the most outstanding asset in performance. In comparison, gold has risen about 40%, and the Nasdaq Composite Index has only increased around 20%. International investment bank UBS estimates the silver price target for 2026 to be between $58 and $60 per ounce, with even the possibility of reaching $65/oz.

This wave of market enthusiasm has attracted a large number of retail investors into the silver market, among which Silver ETFs have become the preferred tool due to their trading convenience and relatively controlled risk.

What is a Silver ETF? How does it work?

A silver ETF is an investment fund that tracks the silver price, allowing investors to participate in the silver market without purchasing and storing physical silver. Investors can buy and sell just like stocks through a brokerage account, enabling easy market entry and exit.

Typically, the ETF holds physical silver bars or uses derivatives such as futures contracts linked to silver prices to replicate market performance. When silver prices rise by 5%, the ETF’s net asset value (NAV) will roughly increase by 5%; similarly, when silver prices fall, the ETF’s NAV declines accordingly. This positive correlation allows investors to directly benefit from silver price fluctuations.

Physical Silver vs. ETF, which is more suitable for you?

Buying physical silver provides a sense of asset security, but practical operations are complicated. Storage costs (safe deposit box rent or annual warehousing fees of 1-5%), theft risks, oxidation concerns, and the need to find reputable silver shops or precious metals dealers for buying and selling, with a spread of 5-6%, make liquidity much lower than financial products.

Silver ETFs are the opposite. Investors can trade easily through brokerage accounts, avoiding the hassle of transportation, testing, and storage. Even without holding physical silver, they can fully track silver price movements. For Taiwanese investors, this is undoubtedly a more efficient and convenient way to participate.

Overview of 7 common silver ETFs

SLV - The most well-known silver ETF globally

Launched by BlackRock in 2006, managing over $30 billion. Its holdings mainly consist of physical silver, stored by JPMorgan Chase. It adopts a passive management strategy, periodically selling small amounts of silver to cover operational costs, and does not actively trade to capture volatility. Since 2014, it has tracked the LBMA silver benchmark price.

( AGQ - High-risk, high-reward leveraged product

ProShares launched in December 2008, aiming to achieve twice the daily performance of silver. It invests through futures contracts and derivatives, mainly targeting short-term traders seeking amplified gains. Note that due to compounding decay and rollover costs, AGQ is only suitable for short-term trading and should not be held long-term.

) ZSL - Inverse leveraged bearish tool

Provides 2x inverse (-2x) daily performance of LBMA silver fixing price. Suitable for hedging against silver declines or profiting from falling prices. Due to leverage and inverse mechanisms, it is only suitable for short-term trading.

PSLV - Redeemable physical silver closed-end fund

Launched in October 2010, this closed-end fund issues a fixed number of units, with trading prices determined by supply and demand, often trading at a premium or discount. Despite its unique structure, it is favored for pure physical silver exposure. Currently managing about $1.2 billion, it is one of the largest silver-themed closed-end funds.

SLVP - Low-cost mining stock ETF

Launched by BlackRock in 2012, with a management fee of 0.39%, offering a cost advantage. It covers global silver exploration and mining companies, passively tracking MSCI indices. However, historical performance shows that PSLV has high volatility and tracking errors, with wider bid-ask spreads, limiting its attractiveness.

( Quota Yuan Avenue Dow Jones Silver - Taiwan local option

Established in 2018, it tracks the Dow Jones Silver Excess Return Index via COMEX futures to achieve tracking. Offering an issuance price of NT$20 and opening at NT$19.86 on the first trading day. Rated as high volatility, suitable for investors who can tolerate fluctuations.

How can Taiwanese investors buy and sell silver ETFs?

) Purchase channel 1: Discretionary trust

This is the main choice for Taiwanese investors, executing overseas trades through domestic brokerages such as ###Fubon, Cathay, Yuanta, Yuanta, etc. ###

Steps:

• Open a discretionary trust account at a domestic broker ### online or in person, prepare ID and bank info ###
• Choose settlement in TWD or foreign currency
• Use broker’s app or website to search for the product code ( like SLV )
• Many brokers support regular fixed investments, allowing investors to buy in installments

Advantages: Regulated by the Financial Supervisory Commission, high security; tax handled by the broker; no need to transfer funds abroad; convenient for small investors with dollar-cost averaging

Disadvantages: Higher transaction fees; limited product options

( Purchase channel 2: Open an account directly with overseas brokers

A more direct investment method, saving intermediary costs, with lower trading costs and faster execution.

Steps:

• Open an account online on the overseas broker platform ) prepare passport, ID, proof of address, bank info (
• Transfer funds via remittance (TWD to USD), set up a designated account )
• Use app or website to place orders and buy/sell directly

Advantages: Very low or no commission fees; diverse products; supports advanced tools like margin trading

Disadvantages: Mostly in English interface; remittance and tax handling are self-managed; 30% US dividend withholding tax requires refund application; transferring funds abroad involves complex risk management

How to sell ETF via fixed dollar-cost averaging?

For positions accumulated through regular fixed investments, investors have several flexible exit strategies:

• Partial profit-taking: When silver reaches target levels, sell parts of holdings gradually to lock in profits
• Stop contributions and hold: Stop regular purchases but retain existing positions, waiting for better exit points
• Set stop-loss or target prices: Many brokers offer conditional orders to automatically sell at preset prices
• Monthly partial sales: Divide holdings into several parts, selling a fixed amount each month, similar to reverse dollar-cost averaging

Tax issues for silver ETFs

Taiwan-listed ETFs (like 00738U): Tax-exempt on purchase, 0.1% transaction tax on sale

Overseas-listed ETFs (like SLV): Regarded as overseas property transaction income, included in overseas income. Total overseas income ≤ NT$1 million annually is exempt from minimum tax; excess over NT$1 million is taxed at 20% after deducting NT$7.5 million exemption ###

Comparison of four silver investment methods

Risk reminders for investing in silver ETFs

1. Silver price volatility far exceeds gold and stocks Although this year’s gain exceeds 100%, history shows sharp corrections are common, which can cause significant short-term losses, suitable only for high-risk tolerance investors.

2. Tracking errors are not negligible Futures-based ETFs are affected by rollover costs, potentially underperforming spot silver over the long term; physical ETFs have annual fees (~0.4-0.5%) that gradually erode returns.

3. Currency and tax considerations for overseas ETFs Silver prices are influenced by geopolitical, industrial demand (solar, electronics), and monetary policies, with exchange rate risks and complex tax issues involved.

Conclusion

Silver ETFs provide a convenient investment channel, allowing Taiwanese investors to capture silver market opportunities instantly without the burden of physical management. Different ETFs vary in management fees, tracking methods, and leverage multiples, so investors should choose suitable products based on their risk tolerance and investment horizon.

A diversified allocation strategy is recommended to avoid over-concentration in a single product, and regular review of market changes and personal holdings is essential. For those planning to sell ETF holdings accumulated via fixed dollar-cost averaging, pre-planning partial exit strategies can lock in profits while maintaining flexibility.