Recently, many people have been asking how to buy "Silver Passbooks," and some even think that Taiwan Bank should also have products similar to gold passbooks. But I need to clarify one thing: Taiwan currently does not have any genuine silver passbook products, and banks have already publicly stated this. Instead of fixating on something that doesn't exist, it's better to understand the real silver investment tools that can be operated.

Speaking of silver investment, many people actually get it wrong. They think silver is not worth investing in because it's cheaper than gold, but the logic of investing in physical silver is completely different. First, silver has far broader uses than gold; solar panels, electric vehicles, semiconductors, 5G, and AI data centers all require it. By 2025, with the explosion of green energy and AI, the demand for silver is expected to grow over 20% annually, making it not just a hedging tool but more like a growth industrial metal. Second, with the same amount of capital, you can buy more silver, so the potential for price increase is naturally greater. Also, silver's volatility is higher than gold; during bullish markets, it often shows a catch-up effect, and profit percentages are 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.

According to data from the Chicago Mercantile Exchange, the long-term price correlation coefficient between silver and gold ranges from 0.4 to 0.8, showing a clear positive correlation. But silver is influenced by more complex factors; besides risk sentiment, attention must also be paid to changes in the tech industry and industrial prosperity.

Returning to investment methods, Taiwanese investors mainly have five options. The first is physical silver, including silver bars and coins, which is the most traditional way. The advantage of buying physical silver is that there is no counterparty risk, it doesn't rely on financial institutions, and as long as you have the physical asset, you can rest assured. It is also suitable for long-term storage and gradual asset accumulation. But the drawbacks are obvious: buy-sell spreads often reach 5% to 20%, making short-term entry and exit costly. Plus, you need to consider safekeeping, safe deposit box fees, and risks of loss or theft, which also slow down liquidity. If you are extremely risk-averse and want to "hold physical assets," physical silver is indeed attractive.

The second is silver ETFs, which are an effective alternative for traders to hold silver. You can buy and sell through a brokerage account, and ETFs track silver indices or spot prices. The iShares Silver Trust (SLV) in the US stock market has an annual expense ratio of only 0.5%. The advantages of ETFs are trading convenience, high liquidity, and the ability to participate in silver price movements at any time. The main costs are trading commissions and management fees, which are relatively transparent. Suitable for those who want medium- to long-term allocation and don't want to worry about safekeeping physical silver. The downside is that you cannot directly exchange for physical silver, and market prices may slightly deviate from net asset value.

The third is silver futures and options, traded on futures exchanges like COMEX, with high leverage features. Standard contracts are 5,000 ounces, micro contracts are 1,000 ounces, and margin requirements are about 5% to 10% of the contract value, making capital efficiency very high. But futures involve expiry settlement pressure, requiring frequent rollover, and leverage is a double-edged sword; if you get the direction wrong, losses can be rapid. These tools are suitable for professional traders.

The fourth is silver Contracts for Difference (CFD), traded through international financial platforms, which involve price differences without physical delivery. They support leverage and both long and short positions, with minimum units flexible down to 1 ounce. The main cost is the bid-ask spread. CFDs have no expiry date, and leverage can be adjusted freely, making them suitable for those who want to quickly grasp silver fluctuations. The benefits include two-way trading, high leverage flexibility, and nearly 24-hour trading during weekdays. But note that CFDs are over-the-counter products, so it's essential to choose regulated platforms.

The fifth is silver mining stocks, investing in companies that extract silver, indirectly participating in silver price increases. Mining stocks usually have 2 to 3 times the volatility of silver prices, and well-managed companies may also pay dividends. But stock prices are affected by company management, production costs, regional risks, and other factors, not just silver prices.

The key to choosing an investment tool is to first clarify what you want. If you seek long-term peace of mind and prefer not to watch the market frequently, physical silver is a stable starting point. Although trading hours are limited and spreads are higher, it completely avoids leverage risks. If you already have a securities account and want to participate in international markets, silver ETFs are suitable for medium- to long-term allocation. If you're familiar with futures markets and have larger positions, silver futures meet your transparency requirements. If your capital is small and you need to trade at night, silver CFDs offer more flexibility, with units as small as 0.01 lots and nearly all-day trading on weekdays.

Regarding entry timing, based on Taiwan time, the most suitable trading window is from 8 PM to 2 AM (overlap of European and American sessions), when market volatility is highest, signals are clearer, and trading volume is abundant. To judge the direction of silver, you can observe gold trends as a leading indicator, combined with the US dollar index, interest rate policies, industrial metal prices, and technical indicators. When the gold-silver ratio is very high (e.g., above 100), it indicates silver is relatively undervalued, presenting a better entry opportunity.

Ultimately, silver's average annual volatility is close to 20%, much higher than gold's 14.7%. Regardless of the investment method chosen, you must first clarify how much loss you can tolerate, and then decide on the proportion of capital and leverage. Making money isn't about having more capital, but about knowing how to make your money work effectively. If you're aiming for long-term preservation and inflation hedging, physical silver is indeed stable, but you must be prepared for 20% to 30% corrections. If you want to participate in silver swing trading and profit from price fluctuations, tools like silver ETFs or CFDs, which offer higher liquidity and more flexible trading hours, are more suitable. Always remember to be prepared for volatility.