Silver exchange-traded funds (ETFs) cooled off on Friday, 10 October, after a powerful surge on Thursday that had lifted the white metal and related investment products to record highs. The pullback came amid profit-booking at elevated levels, following the recent spike in both global and domestic silver prices.
At around 11:20 am, the HDFC Silver ETF dropped 4.1 percent to Rs 155.7, marking the steepest decline among peers. The Nippon India Silver ETF fell 1.7 percent to Rs 153.6, ICICI Prudential Silver ETF slipped 1.1 percent to Rs 157.1, and SBI Silver ETF eased 1.1 percent to Rs 158.2. The Axis Silver ETF was the only gainer, inching up 0.6 percent to Rs 161.
Despite the day’s decline, all major Silver ETFs remain sharply higher for the week -- up between 8 and 9 percent over the past five sessions. The previous five-day returns ranged from 10 to 13 percent. The rally mirrored the sharp spike in global and domestic silver prices, which have outpaced gold so far this year.
In the commodities market, silver futures on the Multi Commodity Exchange (MCX) remained volatile after the record uptrend. The December expiry contract rose Rs 705 to Rs 1,47,029 per kilogram at 11:30 am but remained below its lifetime high of Rs 1,53,388 per kg hit recently. Futures with March and May expiry slipped around 0.4 percent each, while July contracts were down 1.3 percent and September contracts fell nearly 3 percent, signalling some cooling in speculative positions.
Silver prices breached the $50 per ounce mark on 9 October, a level not seen before, while Indian spot prices touched Rs 1.63 lakh per kilogram, attracting heavy investor inflows. Analysts attribute the surge to booming industrial demand, a persistent global supply deficit, and expectations of further US Federal Reserve rate cuts, which have weakened the dollar and bolstered precious metal prices.
“Rising investment and industrial demand along with recovery expectations in China is positively influencing silver prices,” noted Tata Mutual Fund in its October 2025 Silver Outlook report. It highlighted that the global transition toward clean energy is fuelling silver consumption in solar panels and EV batteries, further tightening supply.
Apurva Sheth, head of market perspectives and research at SAMCO Securities, said that ETFs such as SBI Silver, HDFC Silver, and Axis Silver have been trading 9-13 percent above their net asset values, a sign that retail enthusiasm rather than fundamentals has been driving the recent frenzy.
Even so, the broader outlook remains constructive. Silver has risen nearly 69 percent this year, far outstripping gold’s 56 percent gain, aided by the fifth consecutive year of supply deficit and robust investment demand. The gold-silver ratio, which measures the relative performance of the two metals, has fallen below 85, signalling silver’s continued outperformance and potential to remain a high-volatility, high-return play in the near term.
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