Silver-linked exchange-traded funds (ETFs) witnessed a sharp sell-off on Friday as the steep correction in silver prices intensified across global and domestic markets. Aditya Birla Sun Life Silver ETF fell nearly 14% to around Rs 316, while Nippon India Silver ETF dropped over 14% to Rs 301. ICICI Prudential Silver ETF declined close to 15% to Rs 314, and Zerodha Silver ETF slipped about 12.5% to Rs 33. The sharp fall in ETFs mirrored the crash in silver futures, with MCX silver hitting the lower circuit amid heavy selling pressure.
The decline comes as silver prices extended losses after a record rally earlier this week, triggering aggressive profit booking. Globally, spot silver slipped more than 11% toward the $100 per ounce level as a stronger US dollar, rising bond yields, and speculation around a potentially hawkish US Federal Reserve leadership weighed on precious metals. Reports suggesting Kevin Warsh could be appointed as the next Fed chair added to concerns that future monetary policy may remain tighter for longer, reducing the appeal of non-yielding assets like silver. The correction was sharper in India due to the unwinding of elevated domestic premiums and forced liquidation of leveraged positions, which amplified losses in silver ETFs.
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