India silver ETFs see first net outflow in 27 months in February

Silver

India’s silver exchange-traded funds (ETFs) recorded their first net outflow in 27 months in February amid a sharp surge in silver prices and heightened volatility.

Silver ETFs saw gross inflows of Rs 4628 crore during the month, while redemptions stood at Rs 5455 crore, resulting in a net outflow of Rs 826.3 crore. This marked the first net outflow since November 2023, compared with net inflows of Rs 9463.40 crore in January.

Silver prices have surged over the past several months. During February, silver prices rose 10 percent, following a 19 percent increase in January. So far in 2026, silver has gained about 20 percent. Earlier, prices rose 27 percent in December 2025 and 16 percent in November. For the full year 2025, silver surged about 148 percent, after rising 22 percent in 2024.

Silver ETFs in India had seen strong investor participation in recent years. In 2025, silver ETFs received inflows of Rs 23472 crore, compared with Rs 8568 crore in 2024.

Experts said price action in CY2026 hints at a possible consolidation phase in silver prices before they take off higher in the medium term. The silver prices have risen too fast in CY2025 which made many investors book profits. Also, some savvy investors may have switched their allocations from over-heated precious metals to relatively attractively priced equities in recent past.

Meanwhile, gold ETF inflows slowed sharply in February, with investors putting in Rs 5255 crore, a steep moderation from Rs 24039.96 crore recorded in January 2026.

Separately, in late February, market regulator Securities and Exchange Board of India (SEBI) tweaked the valuation framework for physical gold and silver held by mutual fund schemes, shifting away from global benchmarks to domestic market-linked pricing.

In a circular issued, the regulator said mutual funds will value physical gold and silver using polled spot prices published by recognised domestic stock exchanges. The move replaces the current practice of using London Bullion Market Association (LBMA) fixing prices, adjusted for currency, duties and local costs.