Silver-linked exchange-traded funds (ETFs) surged sharply on Indian exchanges on Wednesday, January 21, tracking strong domestic momentum in bullion prices even as international silver prices cooled from record highs.
The Aditya Birla Sun Life Silver ETF climbed 4.79% to Rs 323.75, while ICICI Prudential Silver ETF rose 3.54% to Rs 324.86. Nippon India Silver ETF (SilverBees) gained 3.52% to Rs 308.10, and Zerodha Silver ETF (SilverCase) advanced 3.43% to Rs 32.56.
The rally in Indian silver ETFs came despite COMEX silver futures slipping 0.67% to around $94 per ounce, after prices briefly touched record highs earlier this week. Market participants said domestic prices continued to factor in a weaker rupee, elevated rollover premiums on MCX, and sustained safe-haven demand.
On the Multi Commodity Exchange (MCX), silver prices remained elevated, supported by strong buying interest from retail investors and heightened geopolitical uncertainty. Analysts noted that rising tensions between the US and Europe, concerns over global bond markets, and persistent demand from Asia have kept silver prices near historic levels.
India’s silver market has also seen increased participation through ETFs, as investors seek exposure to precious metals amid volatility in equities and currencies. The divergence between global and domestic prices reflects local supply-demand dynamics, currency movements, and higher carrying costs in futures markets.
With bullion markets remaining sensitive to geopolitical developments and global macro cues, silver prices are expected to stay volatile in the near term.
