Silver exchange-traded funds (ETFs) are gaining significant traction among Indian retail investors, driven by record-high prices and increasing preference for transparent, regulated investment vehicles. Once seen as gold’s lesser cousin, silver is now outperforming the yellow metal in returns and popularity.
Over the past five years, silver has delivered returns of 17.3%, outpacing gold’s 15.8%, according to Bloomberg MCX data as of June 17. The metal’s dual role—valued both as a precious and industrial metal—has contributed to its rising appeal.
Investor enthusiasm is reflected in fund flows. In May 2025, net inflows into silver ETFs stood at ₹853 crore—nearly three times higher than those into gold ETFs, which garnered ₹291.92 crore. Since their introduction in early 2022, following SEBI’s regulatory greenlight, silver ETF assets have jumped more than six-fold from ₹140 crore in May 2023. According to the Association of Mutual Funds in India (AMFI), the silver ETF segment now manages ₹16,866 crore across 15 schemes—an almost ninefold surge from ₹1,852 crore two years ago.
Funds from major players like Nippon India, ICICI Prudential, and Kotak have posted stellar one-year returns of 23.40%, 23.77%, and 23.70%, respectively.
“Silver is increasingly seen as a safe haven during geopolitical crises like the Iran conflict,” said Kaynat Chainwala, AVP of commodity research at Kotak Securities. “With robust demand from sectors such as solar and electronics, silver’s long-term outlook remains bullish, although it’s more volatile than gold. SIPs or staggered investments are a smart way to participate,” she added.
Silver futures reached an all-time high of ₹1,09,748 per kg on the Multi Commodity Exchange (MCX) on June 18, before easing to ₹1,07,277 on June 20. This surge has also boosted interest in digital silver.
“We’ve observed a 2.5–3x rise in digital silver demand in just three months,” said Renisha Chainani, head of research at Augmont. Over 800 kg of digital silver was sold in April alone, largely during Akshaya Tritiya. According to Chainani, demand for digital silver in 2025 has significantly outpaced that for digital gold, with a year-on-year growth of 250%–300%, compared to 20%–30% for gold.
Digital silver’s low entry barrier, transparent pricing, and micro-investment options have made it particularly appealing to Gen-Z and first-time investors. However, it operates outside SEBI and RBI regulation, relying instead on industry standards and SEBI-registered custodians—leaving certain investor protections lacking.
Jewellers, too, are reporting a rise in silver sales. “There’s a clear uptick in demand for silver coins and bars as investments,” said Piyush Gupta, director at PP Jewellers by Pawan Gupta. With upcoming festivals like Ganesh Chaturthi, jewellers expect this momentum to continue.
As silver’s use cases expand and prices remain buoyant, analysts believe silver ETFs are becoming a viable long-term option for investors seeking diversification and regulatory assurance.
