Gold, Silver ETF assets triple in five months to cross Rs 3 lakh crore

Gold ETF

• Gold and silver ETF assets tripled to Rs 3 lakh crore by Jan 2026, hitting records.
• Gold ETF folios up 43%, silver ETF folios surged 323% in 5 months
• Record inflows due to volatility, policy uncertainty, and high investor demand

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The combined assets under management of gold and silver exchange-traded funds (ETFs) crossed Rs 3 lakh crore in January 2026 to a fresh record high, with assets nearly tripling in just five months, driven by record inflows despite significant volatility in precious metal prices.

Data from the AMFI showed that combined AUM, which stood at around Rs 1 lakh crore in August 2025, rose sharply to surpass Rs 3 lakh crore by January 2026.

Rising investor participation was reflected in a sharp increase in folios during the period. Gold ETF folios increased from 80.34 lakh to 1.14 crore, while silver ETF folios rose from 11.31 lakh to 47.85 lakh, representing growth of 43 percent and 323 percent, respectively.

The rapid expansion in assets was supported by record inflows in January 2026. Gold ETFs recorded inflows of more than Rs 24,039 crore during the month, while silver ETFs attracted inflows of Rs 9,463 crore, AMFI data showed. These inflows exceeded equity fund inflows of Rs 24,029 crore. In December, combined inflows into gold and silver ETFs stood at Rs 15,609 crore, compared with Rs 28,055 crore for equity funds, marking the second consecutive month of moderation in equity flows.

Ajay Garg, chief executive officer at SMC Global Securities, said the surge in gold and silver inflows should not be interpreted as a signal of an impending equity market downturn. He said equity mutual fund inflows have moderated, with investors temporarily shifting part of their allocation toward defensive assets to manage volatility and macro uncertainty. Garg added that for long-term investors, maintaining a disciplined allocation of around 10–15 percent in gold and silver remains appropriate, while excessive concentration in a single asset class could increase risk.

From a strategic perspective, Garg said staggered allocation through systematic investment plans or phased ETF investments is preferable to lump-sum buying at elevated levels. He added that as global trade clarity improves and foreign investor flows gradually return, Indian equities could stabilise, with a balanced portfolio combining equities and precious metals remaining a prudent approach.

The surge in inflows indicated that demand for gold remained strong, supported by policy uncertainties, a relatively weaker dollar, and uncertainty around the future trajectory of US Federal Reserve policy. Domestically, uncertainty around the India–US trade equation and continued foreign investor outflows encouraged higher allocations to gold ETFs as a defensive strategy during January.

gold etf

Silver ETFs also saw strong investor participation, following last year’s sharp rally in silver prices, strong fund performance, and investor interest in the metal’s dual role as a safe-haven and an industrial commodity. Data from the World Gold Council showed that central bank gold buying in 2025 fell below 1,000 tonnes, indicating that recent momentum has been increasingly driven by investor flows rather than sovereign accumulation.

Nikunj Saraf, chief executive officer at Choice Wealth, said the recent spike in gold and silver inflows reflected return-chasing behaviour rather than a structural shift in asset allocation. He said precious metals have delivered strong momentum over the past year, and investor flows tend to follow performance. Saraf added that a significant portion of the inflows appears tactical, driven by recent returns and global uncertainty, noting that gold and silver function best as portfolio stabilisers over a cycle rather than primary return drivers.