Recently, the topic of silver has been especially popular, and many Taiwanese investors are asking how to invest in silver in Taiwan. I'll start with a common question many people ask: Is there a silver savings account that works like a gold savings account where you can open an account at a bank? The answer is no. Currently, the Taiwanese banking system does not offer such products, and even Taiwan Bank has publicly clarified this.

But that doesn't mean there's no way to invest in silver. In fact, there are quite a few tools available for operation, such as physical silver, silver ETFs, silver CFDs, futures, and mining stocks. Each has different costs, risks, and suitable investors. The key is to find a method that matches your own rhythm.

Why has silver become so popular recently? I think there are several reasons. First, silver is not just a hedge asset; its uses are actually much broader than gold. Solar panels, electric vehicles, semiconductors, 5G, AI data centers—all require large amounts of silver. By 2025, with the explosion of green energy and AI, the demand for silver is expected to grow over 20% annually, turning silver into a growth industrial metal, not just a precious metal.

Next is price elasticity. Silver is relatively inexpensive—about 1/30 to 1/120 of gold prices—making it more accessible for small investors. More importantly, silver's price volatility is much higher than gold's. During bullish markets, it often shows a rally effect, with profit percentages often 1.5 to 2 times that of gold. Of course, the risks are also higher, making it suitable for those who can tolerate short-term fluctuations.

Regarding investment tools, the most traditional is directly buying physical silver. Silver bars or coins give a sense of security, especially for those who want to hold physical assets in extreme situations. The advantages are no counterparty risk and no worries about financial institution failures. The disadvantages are the high buy-sell spreads, usually between 5% and 20%, making short-term entry and exit costly. You also need to consider storage and safe deposit box fees, and liquidation isn't always quick.

If you already have a securities account, silver ETFs are a more convenient choice. For example, the iShares Silver ETF (SLV) has an annual expense ratio of only 0.5%, with high liquidity and easy trading, eliminating the need to store physical silver. The downside is you can't directly exchange it for physical silver, and the market price may have slight premiums or discounts, but for long-term investors, the impact is usually limited.

Looking for more flexible options? Silver CFDs are very interesting. Their biggest feature is that they allow two-way trading—you can go long if silver prices rise, or go short if they fall. Leverage is also flexible, adjustable by multiples, with minimum units as small as 0.01 lots. Trading hours are almost 24/7 on weekdays, especially during the overlap of European and American markets from 8 PM to 2 AM Taiwan time, when volatility and signals are most prominent. But remember, leverage is a double-edged sword; if you get the direction wrong, losses can be amplified, so setting stop-losses is essential.

If you're a professional trader, silver futures are also an option. Standard contracts are 5,000 ounces, with margin requirements of only 5% to 10%, making capital use very efficient. But futures involve expiry settlement pressures and require frequent rollover, which raises the entry barrier. Additionally, silver mining stocks provide indirect exposure to silver's rise. They usually have 2 to 3 times the volatility of silver prices. If the company performs well, you can also receive dividends, but it takes time to research individual stocks' fundamentals.

When choosing an investment method, the first question to ask yourself is: Are you aiming for long-term preservation or short- to medium-term trading? If you're looking to hedge against inflation or diversify assets, physical silver or silver ETFs are more stable options. If you want to profit from silver's large swings, CFDs or futures are more suitable.

The second consideration is your lifestyle rhythm. Silver ETFs follow US stock market hours, while futures and CFDs are active during European and American trading hours—roughly from 8 PM to early morning Taiwan time. Traditional bank products can only be traded during daytime hours, so if you’re unavailable during the day, you might miss key price movements.

Finally, the most important point is that silver's annual volatility is close to 20%, much higher than gold's 14.7%. Regardless of which method you choose to invest in silver, you must first understand how much loss you can tolerate, then decide on your investment proportion and leverage accordingly. Making money isn't about having more capital; it's about knowing how to make your money work effectively.

Now, to invest in silver in Taiwan, the key is to clarify your goals first, then find tools that match your lifestyle rhythm. Don't be fooled by the idea of a "silver savings account"; in reality, there are many more practical ways to operate than you might think.