Gold, silver ETFs continue to shine as investor demand propels strong inflows

Gold ETFs drew in Rs 2,190 crore in August, the largest monthly haul since January’s Rs 3,751 crore

Exchange traded funds (ETFs), especially those of gold and silver, continued to see investor demand with inflows in gold ETFs reaching the highest in seven months, and silver ETFs posting their best month since June, according to the latest data from the Association of Mutual Funds in India (AMFI).

Gold ETFs drew in Rs 2,190 crore in August, the largest monthly haul since January’s Rs 3,751 crore. After slipping into outflows in March and April, gold funds bounced back as investors sought a defensive allocation amid global uncertainty and steady domestic bullion prices.

Silver ETFs attracted Rs 1,759 crore in August, their strongest showing since May. Other ETFs, when silver is excluded, recorded inflows of about Rs 5,485 crore, a rebound from weaker flows seen earlier in the year and a sign of renewed interest in passive equity.

The northward price moves in the underlying commodities helped the flows. On the Multi Commodity Exchange (MCX), gold rose about 5% in August, touching a monthly high of Rs 1,01,967 per 10 grams. Silver gained roughly 9% for the month, peaking at Rs 1,17,468 per kg. Year-on-year, gold is up about 35–40% and silver around 40–45%, putting both metals near record highs.

Experts suggest that silver’s recent strength reflects both its safe-haven characteristics and industrial drivers. A recent report by Motilal Oswal Financial Services pointed to geopolitical tensions, tariff uncertainty and a weaker dollar as factors boosting silver’s appeal. At the same time, rising industrial demand, from solar panels, electric vehicles and 5G equipment, plus continued supply tightness and large imports have supported prices.

Russia and Saudi institutional purchases, along with over 3,000 tonnes of domestic silver imports in the first half of 2025, have added to investor confidence, the report also suggests.

On the trend in Gold ETFs, Nehal Meshram, senior analyst at Morningstar Investment Research India said, “For domestic investors, gold acts as a shield against currency fluctuations and inflation, while providing tactical positioning ahead of pivotal global monetary policy decisions.”

Similarly, Hemen Bhatia, ED and CEO of Angel One Asset Management Company, added, “Gold has once again proven its strength as a value asset and a reliable hedge in volatile markets. With cumulative investments surpassing Rs 5,648 crore year-to-date in 2025, Gold ETFs have emerged as a key allocation for long-term investors, enhancing stability and risk-adjusted returns.”

Overall, passives also continue to see growth in their AUM. According to AMFI’s monthly note, passive AUM rose from Rs 11.2 lakh crore in August 2024 to Rs 12.50 lakh crore in August 2025, an increase of about 11.5% year-on-year. On a monthly basis, passive AUM was up 0.2%.

Within this, gold ETFs nearly doubled in size over the past year, with assets rising from Rs 37,390 crore in August 2024 to Rs 72,496 crore in August 2025 — a 93.9% increase. Other ETFs also expanded, climbing from Rs 7.94 lakh crore to Rs 8.42 lakh crore, a growth of 6% year-on-year.

In August, Silver ETFs saw assets under management rising from Rs 22,963 crore in July to Rs 26,294 crore, a total growth of Rs 3,331 crore supported by both fresh inflows and positive mark-to-market gains.

Nippon India Gold BeES is currently the largest gold ETF with an AUM of Rs 23,832 crore, delivering a one-year return of about 51%. Other sizeable peers include HDFC Gold ETF (Rs 11,379 crore AUM and a 51.4% one-year return), SBI Gold ETF (Rs 9,506 crore and a 51.4% return), and ICICI Prudential Gold ETF (Rs 8,770 crore and a 51.7% return).

On the silver side, Nippon India Silver ETF leads the pack with an AUM of Rs 9,099 crore and a one-year return of 50.8%, followed by ICICI Prudential Silver ETF (Rs 7,257 crore and a 51.2% return) and HDFC Silver ETF (Rs 1,369 crore and a 50.4% return).

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