Recently, many people have been discussing silver investments, especially after silver prices surged at the beginning of the year. A bunch of people are asking at banks, "Why isn't there a silver passbook?" wanting to store silver just like a gold passbook. Honestly, I had the same idea at first, but later I found out that Taiwanese banks simply don't offer this kind of product.

Rather than calling it a silver passbook, it's more like a collective market imagination. But that's not necessarily a bad thing, because once you clear up this misunderstanding, you can see more truly feasible ways to invest in silver.

Why has silver become so popular recently? Basically, it's no longer just a safe-haven asset. By 2025, green energy and AI will explode, with silver usage increasing over 20% annually. From solar panels, electric vehicles, to semiconductors and data centers, silver has become a real industrial metal. Compared to gold, which is only a safe haven, silver adds industrial demand as an imaginative space, so it's no wonder professional investors are paying attention.

Plus, silver's price base is low—usually only 1/30 to 1/120 of gold—so with the same amount of money, you can buy more silver. Historically, silver's price increases are often 1.5 to 2 times that of gold, and this magnification effect is very attractive to those with limited capital. Of course, the risks are higher too.

Now, let's look at several ways Taiwanese investors can actually operate. The first is to buy physical silver bars or coins directly—this is the most traditional and intuitive, suitable for those who want to "hold physical assets." The advantages are no counterparty risk; the disadvantages are large buy-sell spreads (5% to 20%), high storage costs, and slow liquidity.

The second is silver ETFs, which I think is the most balanced choice. You can buy and sell directly through brokerage accounts, with high liquidity and transparent costs (about 0.5% annual fee). It's suitable for medium- to long-term allocation. The only regret is that you can't exchange for physical silver, but for most people, that's not a problem.

If you're already familiar with futures markets, silver futures are also an option. Standard contracts are 5,000 ounces, with margin requirements of about 5% to 10%, offering high leverage. But you need to pay attention to rollover costs and settlement pressures—this is suitable for professional traders.

The fourth method is silver CFDs, which I've seen many people using recently. They allow two-way trading (long and short), with flexible leverage, and can be traded almost 24 hours on weekdays. The minimum unit can be as small as 1 ounce, and the main cost is the bid-ask spread. For those wanting to capitalize on silver volatility for short-term trading, this tool is quite friendly.

Finally, there are silver mining stocks, which indirectly participate in silver price rises. Mining stocks usually fluctuate 2 to 3 times more than silver prices, but their stock prices are affected by company operations, costs, political risks, and more, so some research is needed.

So, how to choose? My advice is to first ask yourself: Are you aiming for long-term preservation of value or short-term volatility trading?

If it's the former, physical silver or silver ETFs are good options. Physical silver allows you to completely avoid leverage risk and sleep more peacefully, but you must accept 20% to 30% pullbacks during the process. Silver ETFs follow market hours; US silver ETFs are mainly tradable in Taiwan during the evening, with good liquidity.

If it's the latter, you need more flexible tools. Silver futures and CFDs are active mainly during European and American trading hours (Taiwan evening 8 PM to early morning), which coincides with after-work hours suitable for retail traders. In contrast, traditional bank products are limited to daytime hours, making it easy to miss key price zones.

I especially want to highlight the timing for trading silver. Based on technical and fundamental analysis, the period from 8 PM to 2 AM Taiwan time, when European and American markets overlap, has the highest volatility and trading volume—making it the best window for short-term operations.

When judging the direction of silver, consider several angles. First, look at gold trends, because gold and silver often move together, with gold usually leading silver. Combine this with the US dollar index, interest rate policies, and technical indicators (RSI, MACD). Another important indicator is the gold-silver ratio, which historically fluctuates between 50 and 80. When the ratio exceeds 100, it indicates silver is relatively undervalued, and it might be a better entry point.

Finally, a word on risk. Silver's annual average volatility is close to 20%, much higher than gold's 14.7%. Regardless of the method chosen, first understand how much loss you can tolerate, then decide how much capital and leverage to use. It's not about having more money to make money, but about knowing how to make your money work effectively.

So, returning to the initial question: How should Taiwanese investors correctly invest in silver? The first step is to clarify that "silver passbook" does not exist. The second is to choose tools based on your needs and lifestyle. The third is to always be prepared for volatility. Master these three points, and you'll find your own rhythm in the silver market.