Silver-linked exchange traded funds (ETFs) listed in India moved sharply higher in today’s session, mirroring the strong rally in global and domestic silver prices. Popular silver ETFs on the NSE gained around 4–5%, broadly tracking the surge seen in international silver contracts and MCX futures.
The primary driver behind the sharp rise in silver ETFs was the strong jump in global silver prices, with Comex silver trading well above $110 per ounce after touching record highs earlier this week. Silver prices have already climbed close to 60% so far this year, making it one of the best-performing commodities globally. Such a sharp move in the underlying metal typically gets reflected almost immediately in silver ETFs, as they are designed to closely track spot or near-spot silver prices after adjusting for costs.
Another key factor supporting silver ETFs is the spillover effect from gold, which continues to trade near all-time highs amid geopolitical tensions, trade-related uncertainty, and expectations of US Federal Reserve rate cuts later in the year. As investors look for exposure to precious metals beyond gold, silver has attracted strong inflows due to its relatively lower base price and higher volatility, amplifying ETF gains.
Market experts note that momentum-driven buying and short covering in silver futures have added to intraday strength, while sustained safe-haven demand continues to underpin prices. In India, silver ETFs also benefit from rising participation by retail investors who prefer ETFs over futures due to lower risk, ease of trading, and no need for physical storage.
That said, analysts caution that while the broader trend remains strong, technical indicators suggest silver is currently overbought, which could lead to short-term consolidation. However, as long as global silver prices remain elevated, silver ETFs are likely to stay firm, closely reflecting movements in the underlying metal.
Overall, today’s surge in silver ETFs reflects a combination of record global prices, strong momentum, safe-haven demand, and rising investor participation, keeping silver-linked instruments firmly in focus.
