Recently, the topic of silver has become extremely popular, and many people ask me if there is a "Silver Passbook" that allows saving silver in banks like gold. Honestly, after checking the major banks in Taiwan, there are no such products available. But that doesn’t mean you have no options to invest in silver; in fact, the choices are broader now. The key is to find the method that suits you best.

Let me first explain why silver has been so hot lately. Silver is not just a safe-haven asset; it’s heavily used in solar panels, electric vehicles, semiconductors, 5G, and AI data centers. After the green energy and AI boom in 2025, silver demand is expected to grow over 20% annually. Compared to gold, silver’s industrial demand is stronger, and its price is much lower (roughly 1/30 to 1/120 of gold), making it more accessible for small investors. Most importantly, silver’s price volatility is higher than gold’s, often showing a “catch-up” effect during bullish trends, with profit percentages typically 1.5 to 2 times that of gold. Of course, the risks are also higher, so it’s essential to be aware of that.

So, what silver investment tools are actually available to Taiwanese investors? Here’s a summary: physical silver (silver bars, coins), silver ETFs, silver futures, silver CFDs, and silver mining stocks. Each has different costs, risks, and trading hours.

First, let’s talk about physical silver. If you want to “hold tangible assets,” physical silver bars do have appeal. Banks in Taiwan and precious metal dealers sell silver bars, and if you’re wondering where to buy silver bars, you can directly inquire at banks or jewelry stores. The advantage is no counterparty risk—you don’t have to worry about financial institution collapse—and it’s suitable for long-term holding. But the downsides are obvious: buy-sell spreads often reach 5% to 20%, storage costs are high, and quick liquidation requires finding buyers, so liquidity is far less than financial products.

Silver ETFs are much friendlier. I’ve used the US-listed SLV (iShares Silver ETF) myself, with an annual expense ratio of only 0.5%. The benefits are easy trading, open anytime during market hours, high liquidity, and transparent costs. The downside is you can’t exchange for physical silver, and the market price may have slight premiums or discounts, but for long-term investors, this impact is limited. If you already have a securities account, silver ETFs are excellent medium- to long-term tools.

Silver futures are suitable for professional traders. On COMEX, the standard contract is 5,000 ounces, with margin requirements around 5% to 10% of the contract value, making leverage very high. But futures involve expiry settlement pressure, requiring frequent rollovers, and if you get the direction wrong, losses can be quick. This is not recommended for beginners.

Silver CFDs are what I want to highlight most. They track the spot silver price, with minimum trading units as small as 0.01 lots. The bid-ask spread is usually $0.03 to $0.05, with no additional commissions. The key advantage is you can trade both ways—go long or short—and leverage can be adjusted (I recommend beginners keep it under 5x). The best part is the extended trading hours—almost 24/7 on weekdays, especially from 8 PM to 2 AM Taiwan time (overlapping with European and American markets), when volatility and volume are highest—perfect for after-work trading.

Silver mining stocks are an indirect way to participate. Buying shares of companies that mine silver usually offers 2 to 3 times the volatility of silver prices, and if the company performs well, you can also receive dividends. But stock prices are affected by management, production costs, regional risks, and aren’t purely tracking silver, so researching the company fundamentals is necessary.

Now, the question is: which option should you choose? My advice is to ask yourself three questions.

First, what is your goal? If it’s long-term preservation of value and hedge against inflation, physical silver is steady but may see 20% to 30% corrections. If you want to capitalize on silver’s big swings for short- or medium-term trading, tools like silver ETFs or CFDs, which offer high liquidity and flexible trading hours, are more suitable.

Second, what is your time horizon? Silver ETFs follow US stock market hours, mainly trading in Taiwan during the evening. Silver futures and CFDs are active during European and American trading hours (8 PM to early morning Taiwan time), which is after work hours. Traditional bank products usually only operate during daytime, so if you can’t monitor prices during the day, you might miss key opportunities.

Third, how much volatility can you tolerate? Silver’s annual average fluctuation is close to 20%, much higher than gold’s 14.7%. Regardless of the method you choose, you must first understand how much you can lose, then decide how much capital and leverage to deploy accordingly.

If you want to try silver CFDs, the process is quite straightforward. First, analyze the gold-silver ratio, gold trends, and technical indicators (RSI, MACD, etc.) to determine if the market is bullish or bearish. Then set your trade size, leverage, stop-loss, and take-profit levels, and submit your order to open a position. When the price hits your target or stop-loss, it will automatically close. You can also manually close the position. The key is to pre-set your risk management parameters so that even if you can’t monitor the market constantly, you can still effectively control your risk.

A final practical tip: silver and gold tend to move in similar directions, but silver’s safe-haven attribute is relatively weaker. You can observe gold trends as a leading indicator, combined with the US dollar index, interest rate policies, and industrial metal prices to gauge the market direction. The gold-silver ratio is also important; historically, it oscillates between 50 and 80. When the ratio is very high (e.g., above 100), it indicates silver is relatively undervalued, presenting a better entry opportunity.

Honestly, making money isn’t about having a lot of capital, but about knowing how to make your money work effectively. Silver’s low price point and diverse uses, combined with market sentiment, often lead to short-term large swings. But one thing to keep in mind: currently, Taiwan does not have a “Silver Passbook,” so first clarify what you want, then choose a trading method that fits your lifestyle. Always be prepared for volatility—that’s the first step to investing in silver wisely.