Recently, many people have been asking whether "Silver Passbooks" actually exist. I need to clarify this misconception first. There are no genuine silver passbook products in the Taiwanese banking system, including Taiwan Bank, which has publicly stated they do not offer such products. Many are misled by this concept; in reality, there are other silver tools that can be operated.

Honestly, there's a reason why silver has gained popularity in the past two years. Compared to gold, silver is not just a hedging tool; it’s also widely used in solar energy, electric vehicles, and semiconductors. By 2025, with green energy and AI booming, the demand for silver is expected to grow over 20% annually, transforming silver from a purely precious metal into a growth-oriented industrial metal. Additionally, silver prices are low, making it easier for small investors to buy silver bars—30 to 120 times cheaper than gold—allowing more silver to be purchased with the same amount of money, and naturally offering greater upside potential.

Most importantly, silver is more volatile than gold. I’ve noticed that during bullish markets, silver often exhibits a "catch-up" effect, with profit percentages often 1.5 to 2 times that of gold. But this also means higher risk, suitable for those who can tolerate short-term fluctuations. According to the Chicago Mercantile Exchange, the long-term correlation coefficient between gold and silver ranges from 0.4 to 0.8, showing a clear positive correlation. However, silver is influenced by more complex factors, not just risk sentiment, but also technological industry trends and industrial economic conditions.

Currently, there are roughly five ways to invest in silver. If you want the most traditional and intuitive approach, physical silver bars and coins are options. Holding physical silver has no counterparty risk, doesn’t rely on financial institutions, and as long as you have the physical asset, it’s stable. But the drawbacks are obvious: buy-sell spreads often reach 5% to 20%, making short-term trading costly, and you also need to consider storage safety, safe deposit box fees, and the risk of loss. Liquidity is slower. For those interested in silver bar investment, this method is suitable for long-term holding and gradual accumulation, but not for frequent trading.

If you already have a securities account, silver ETFs are excellent medium- to long-term tools. The iShares Silver Trust (SLV) in the US stock market has an annual expense ratio of only 0.5%, with convenient trading and high liquidity, allowing you to buy and sell during market hours. The main costs are trading commissions and management fees, which are relatively transparent. The only downside is that you cannot directly exchange for physical silver, and the market price may have slight premiums or discounts, but for long-term investors, this usually isn’t a big concern.

If you want higher leverage and flexibility, futures and CFDs are available. Silver futures are traded on COMEX, with standard contracts of 5,000 ounces and mini contracts of 1,000 ounces. Margin is about 5% to 10% of the contract value. But futures involve settlement pressures, requiring frequent rollovers, and leverage is a double-edged sword—mistakes can lead to rapid losses. This is suitable for professional traders or disciplined investors.

Silver CFDs are different; they have no expiration date, and leverage can be adjusted freely. The minimum trading unit can be as small as 1 ounce. The main cost is the bid-ask spread, usually $0.03 to $0.05, with no additional commissions. I think CFDs are suitable for short-term traders because they allow two-way trading—going long or short—and can be traded almost 24 hours a day on weekdays. The overlap between the US and European markets from 8 PM to 2 AM Taiwan time offers the highest volatility and clearest signals, making it the best period for short-term trading.

The last option is investing in silver mining stocks. Investing in companies that extract silver allows indirect participation in silver price increases. Mining stocks often have 2 to 3 times the volatility of silver prices, and if the company operates well, dividends can be earned. But stock prices are affected by management, production costs, and regional risks, and do not simply track silver prices. This approach is suitable for long-term investors willing to research individual stocks’ fundamentals.

Which one should you choose? I think you should ask yourself three questions. First, what do you want: long-term preservation against inflation or short- to medium-term trading based on volatility? If it’s the former, physical silver bars are indeed stable, but you must be prepared for 20-30% pullbacks. If it’s the latter, tools like ETFs and CFDs, with high liquidity and flexible trading, are more suitable.

Second, what is your lifestyle rhythm? Silver ETFs follow the trading hours of the listed market, while futures and CFDs are mostly concentrated during US and European trading hours, from 8 PM to early morning Taiwan time. Traditional bank products usually only operate during daytime hours, so if you’re unavailable during the day, you might miss key price movements.

Third, and most importantly, be prepared for volatility. Silver’s annual average amplitude is close to 20%, much higher than gold’s 14.7%. Regardless of your choice, first understand how much loss you can tolerate, and base your investment amount and leverage accordingly. The gold-silver ratio is also a useful indicator; historically, it oscillates between 50 and 80. When the ratio is very high (e.g., over 100), it indicates silver is relatively undervalued, and it may be a better entry point.

Ultimately, because silver’s price base is low, its diverse uses, and market sentiment-driven nature, it often presents opportunities for short-term large swings. But the first step is always to clarify what you want, then choose a trading channel that fits your lifestyle, and third, always prepare for volatility. Remember: making money isn’t about having a lot of capital, but about knowing how to make your money work effectively.