Lately, the topic of silver has been really hot, and many people are asking if Taiwan has something like a silver savings account. Honestly, I’ve checked around, and currently, there are no real silver deposit products in Taiwan’s banking system, even Taiwan Bank has clarified that.

But that doesn’t mean there’s no way to invest in silver. In fact, there are quite a few practical methods—physical silver, silver ETFs, silver CFDs, futures, mining stocks—each with different cost structures and risk characteristics, and the key is to find what suits you best.

Why are so many people paying attention to silver now? To be honest, silver’s appeal isn’t just for hedging. Its industrial uses are far more extensive than gold; solar panels, electric vehicles, semiconductors, 5G, AI data centers all require silver. By 2025, with green energy and AI booming, the annual growth rate of silver consumption will exceed 20%. This means silver is not just a traditional precious metal but more like a growth industrial metal.

Plus, silver is much cheaper relative to gold—gold prices are usually 30 to 120 times higher than silver—making it more accessible for small investors. Most importantly, silver’s price volatility is greater than gold’s; during bullish markets, it often exhibits a catch-up effect, with profit percentages often 1.5 to 2 times that of gold. Of course, the risks are higher too, requiring the ability to withstand 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—beyond just risk sentiment, it also depends on technological industry trends and industrial economic conditions.

Let’s talk about specific investment methods. If you want the most traditional and intuitive way, directly holding physical silver is an option. Silver bars or coins allow you to “hold tangible assets” in extreme situations, with no counterparty risk, and can be stored long-term. But the drawbacks are obvious—buying and selling spreads often reach 5% to 20%, storage costs, and liquidity are not ideal.

If you already have a securities account, silver ETFs are a good medium- to long-term tool. For example, the iShares Silver Trust (SLV) has an annual expense ratio of only 0.5%, with easy trading and high liquidity, allowing you to easily participate in the fluctuations of the spot silver price. The downside is you can’t directly exchange for physical silver, and the market price may slightly deviate from the net asset value, but for long-term investors, the impact is usually limited.

For those seeking more flexibility, silver CFDs are quite interesting. They track the spot silver price and support two-way trading with leverage. You can buy when bullish, sell when bearish, and choose your leverage multiple. The minimum trading unit can be as small as 0.01 lots, with main costs being the bid-ask spread, usually between $0.03 and $0.05. Moreover, trading is almost 24 hours on weekdays, especially suitable for working professionals who can only trade after hours. In Taiwan time, the most volatile and clearest signals are from 8 PM to 2 AM (overlapping European and American markets).

Of course, leverage is a double-edged sword. If you get the direction wrong, losses can be amplified. So, regardless of the leverage used, it’s essential to set stop-loss and take-profit levels beforehand; otherwise, large losses can occur in a short time.

Futures and options are for professional traders. On COMEX, a standard contract is 5,000 ounces, with margin requirements about 5% to 10% of the contract value, making capital efficiency very high. But futures have expiry settlement pressures and require frequent rollover. These tools are suitable for those already familiar with futures markets, accustomed to watching spreads and margin changes.

Another option is 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 are possible. But stock prices are affected by management, production costs, regional risks, and other factors, and do not simply track spot silver. Suitable for those willing to research company fundamentals.

Which to choose? Actually, there’s no “best” method—only what’s most suitable for your current needs. If you’re aiming for long-term preservation and inflation hedging, physical silver is a steady choice, but you must be able to tolerate 20% to 30% pullbacks along the way. If you want to participate in short- to medium-term swings and profit from price fluctuations, tools like silver ETFs or silver CFDs, which offer higher liquidity and more flexible trading hours, might be more appropriate.

The second consideration is trading hours. Silver ETFs follow the trading hours of their listing markets, while futures and CFDs are mostly active during European and American sessions—meaning Taiwan’s evening 8 PM to early morning hours. Traditional bank products usually can only be traded during daytime business hours, so those who can’t monitor the market during the day might miss key price zones.

Finally, and most importantly: always be prepared for volatility. Silver’s average annual amplitude is close to 20%, much higher than gold’s 14.7%. Whatever method you choose, first understand how much loss you can tolerate, and base your capital allocation and leverage on that.

When judging silver’s direction, you can consider a few indicators. Gold often leads silver; the gold-silver ratio usually moves in sync. Historically, the ratio oscillates between 50 and 80; when it’s too high (e.g., above 100), it indicates silver is relatively undervalued, presenting a better entry opportunity. Of course, this should be combined with fundamentals like the US dollar index, interest rate policies, industrial metal prices, and technical signals.

In summary, the first step in investing in silver is to clarify what you want. Is it long-term preservation and asset diversification, or short- to medium-term trading to capitalize on volatility? The second step is to choose a trading channel that fits your lifestyle. The third, and most important, is to always remember: making money isn’t about having more capital, but about knowing how to make your money work effectively.