Silver soars past $83 to a record high! The complete guide for Taiwanese retail investors to jump into silver ETFs

Silver prices hit new highs again. Driven by multiple positive factors such as expectations of Fed rate cuts, global supply tightness, and inclusion in the US critical mineral list, London spot silver soared to a historic high of $83.645 per ounce by the end of 2025, with this year’s gains exceeding 140%, making it the best-performing asset. Although CME’s consecutive margin increases temporarily cooled silver prices to the $70-75 range during the year-end, market enthusiasm for silver in 2026 remains undiminished.

In the face of this investment opportunity, many Taiwanese investors are starting to focus on silver ETFs as an entry shortcut. But which one to choose? How to buy? How are taxes calculated? How big are the risks? Below, we answer these questions one by one.

Repurchase委託 vs Overseas Brokers, Two Ways for Taiwanese Investors to Buy

Interested in investing in silver ETFs? Taiwanese investors have two options, each with pros and cons.

Repurchase委託 (domestic broker acting on behalf of overseas broker) is most convenient, suitable for beginners

This is the preferred choice for most Taiwanese. By entrusting domestic brokers like Fubon, Cathay, Yuanta, or Yongfeng to execute trades with overseas brokers, the entire process is in Chinese, funds stay within Taiwan, and regulatory safety is assured.

Opening an account only requires submitting ID, bank account info, etc., online or in person. Then, choose TWD or USD settlement, search for codes like SLV in the app, and place orders. Many brokers also support regular fixed investments. The downside is higher fees and limited ETF options.

Overseas brokers have lower costs, suitable for experienced investors

For lower fees and more diverse trading options, you can open accounts directly with overseas brokers, saving middleman costs. Steps include online account opening (prepare passport, ID, proof of address), wire transfer, and placing buy/sell orders.

Advantages include very low or zero commissions, access to global ETFs, and advanced tools like options or margin trading. Disadvantages are potential language barriers, the need to handle US withholding tax of 30% on dividends, and the complexity of transferring funds abroad. Security or inheritance issues can be complicated, with no legal protections comparable to Taiwan.

What exactly is a silver ETF? How does it work?

A silver ETF is an investment fund tracking the price of silver. The core idea is simple: it allows you to participate in the silver market without buying physical silver. It is listed on exchanges like stocks, allowing easy entry and exit, with liquidity far exceeding physical silver bars.

Operationally, silver ETFs hold physical silver bars directly or track silver prices via derivatives like futures contracts. If silver prices rise 5%, the ETF also rises 5%; if prices fall, the ETF follows suit. This is why silver ETFs are considered financialized physical silver.

Why is physical silver less convenient than ETFs?

Many investors ask, why not buy physical silver directly? The problem is that it’s too troublesome.

First, storage costs: physical silver requires renting safety deposit boxes or professional vaults, costing 1-5% annually. Storing at home risks oxidation, theft, or damage. Finding trustworthy dealers for buying/selling is difficult, with spreads of 5-6%, plus costs for authenticity and purity verification. Want to sell quickly? Liquidity is low, and buyback prices vary and are opaque.

In contrast, silver ETFs can be traded via securities accounts like stocks, eliminating the hassle of transportation and storage. They offer much higher liquidity, allowing investors to follow silver price movements closely, with lower costs. This explains why, during the 2025 surge, retail investors preferred ETFs over physical silver.

Comparing 7 popular silver ETFs, which one to choose?

Common silver ETFs include:

SLV (iShares Silver Trust) is the most well-known globally, managed by BlackRock, with over $30 billion in assets. Established in 2006, it mainly holds physical silver, tracking the London Silver Market Fixing Price, with a fee of 0.5%. As a passive fund, it doesn’t actively trade for price capture, only periodically sells small amounts of silver at year-end to cover expenses. This results in minimal tracking error, suitable for long-term investors.

AGQ (ProShares Ultra Silver) is a 2x leveraged product, amplifying returns via futures contracts. Launched in 2008, it aims to double the daily performance of the Bloomberg Silver Subindex. Suitable for short-term traders seeking amplified volatility, but due to compounding effects and long-term leverage decay, it’s not suitable for long-term holding.

ZSL (ProShares UltraShort Silver) offers 2x inverse leverage, profiting when silver prices fall, suitable for bearish views or hedging. Like other leveraged ETFs, it’s only for short-term trading; long-term holding erodes value over time.

PSLV (Sprott Physical Silver Trust) is a closed-end fund established in 2010, issuing a fixed number of units, with market prices driven by supply and demand, often trading at premiums or discounts to NAV. Despite this, it holds physical silver directly and manages about $12 billion, making it popular among long-term investors.

SLVP (iShares MSCI Global Silver and Metals Miners), launched by BlackRock in 2012, manages about $600 million, investing in global silver mining companies. With a fee of 0.39%, it pays dividends semi-annually. However, its performance is more volatile, with frequent component adjustments and wider bid-ask spreads, making it less attractive from a return perspective.

Taiwan-listed silver ETF (00738U), launched in May 2018, tracks the Dow Jones Silver Excess Return Index, investing in COMEX silver futures. With a fee of 1%, no dividends, and high volatility, it’s suitable for investors who can tolerate large swings.

DBS (Invesco DB Silver Fund) also tracks COMEX silver futures, with a fee of 0.75%, and is a common futures-based silver ETF.

In summary, for the most stable tracking, choose SLV; for high leverage gains, choose AGQ/ZSL; for physical backing, choose PSLV; for mining leverage, choose SLVP; for convenient trading in Taiwan, choose the Taiwan-listed ETF.

Which offers the highest returns: silver ETFs, physical silver bars, futures, or mining stocks?

Here’s the performance ranking of silver assets in 2025:

Mining stocks outperform: Mining ETFs like SIL achieved a 142% annual return, surpassing the 103% gain of physical silver. This is because mining companies can amplify silver price increases through efficiency improvements and cost control. But they carry higher risks, affected by government regulation, rising costs, or bankruptcies, with much higher volatility than silver prices.

Futures are the most volatile: If correctly predicted, 2x leveraged futures can yield over 200%; if wrong, losses are magnified, potentially losing all capital. In 2025’s rally, bullish futures traders profited handsomely, but the volatility is extreme, risking sharp downturns at any time.

Silver ETFs are the most stable: Tracking silver prices minus fees, net returns are slightly below silver’s spot. In 2025, about 103%, more conservative, suitable for beginners and small investors. No storage or theft risks, quick to enter/exit, offering the best balance of risk and return.

Physical silver bars have the lowest returns: Tracking silver’s 103% gain, but after adding 5-6% premium, annual storage fees of 1-5%, and selling commissions, net returns are only 95-100%. Suitable for long-term holding for crisis protection, but not for short-term trading.

Silver CFDs are intermediate: Trading like ETFs but with smaller capital and leverage, suitable for hedging or speculating with lower costs than futures. Suitable for investors with moderate risk tolerance.

Do you need to pay taxes when buying silver ETFs in Taiwan?

Taxation varies greatly depending on whether the ETF is listed in Taiwan or overseas.

Taiwan-listed silver ETFs are simplest: Treated like stocks, exempt from tax when buying, and pay only 0.1% stamp duty when selling. Easy and convenient.

Overseas-listed ETFs are more complex: When Taiwanese investors buy US silver ETFs, it’s considered overseas property transaction income, subject to foreign income tax. The key exemption threshold is NT$1 million.

In other words:

• If total overseas income ≤ NT$1 million annually, no tax is payable.
• If exceeding NT$1 million, the entire amount is included in basic income (including dividends, interest, etc.).
• After deducting NT$7.5 million exemption, the excess is taxed at 20%.

For example, if your overseas income in 2026 totals NT$2 million, with NT$1.5 million from silver ETF gains and NT$0.5 million from dividends, the full NT$2 million is included in basic income. Since NT$2 million < NT$7.5 million, it remains tax-free. But if overseas income reaches NT$10 million, the NT$2.5 million over NT$7.5 million is taxed at 20%.

Risks of investing in silver ETFs, don’t take lightly

Although silver ETFs have low barriers and high liquidity, risks are significant.

Silver price volatility far exceeds gold and stocks: In 2025’s 140% rise, but history shows sharp corrections. After margin policy took effect on December 29, 2025, silver prices suddenly plunged over 11% intraday, causing many investors to suffer losses. Silver is not a stable asset; suitable for high-risk-tolerance investors.

Tracking errors are inevitable: Futures ETFs incur costs from rolling over contracts, potentially underperforming spot over time; physical ETFs have annual fees of 0.4-0.5%, gradually eroding returns. Don’t ignore expense ratios when choosing ETFs.

Overseas ETFs carry currency and tax risks: Silver prices are affected not only by supply and demand but also geopolitical factors, industrial demand (solar, electronics), and monetary policy. Using repurchase委託 or overseas brokers introduces currency fluctuation risks affecting returns.

Before investing in silver ETFs, ask yourself these questions

Silver ETFs are effective for asset allocation, but before investing, consider:

• How much volatility can I tolerate? Silver’s volatility is 3-5 times stocks; not suitable for those with weak psychological resilience.

• What is my investment horizon? Use leveraged tools like AGQ/ZSL for short-term trading; use SLV/PSLV for long-term.

• How much fee erosion can I accept? 0.5% annual fee may seem small, but over 20 years, it can eat up about 10% of returns.

• Should I allocate to mining stocks? For higher returns, add some SLVP or SIL, but risks double.

Final advice: diversify, avoid over-concentration in a single product, regularly review market changes and your positions. Silver still has potential in 2026, but don’t be blinded by gains—always remember the word “risk.”