Silver ETFs are designed to mirror the price of physical silver. But when investor demand overwhelms supply -- as it has this week -- ETFs can start trading at significant premiums to their net asset values (NAVs).
As NAVs for silver ETFS climb alongside rising domestic prices, experts warn that the FOMO-driven rally may be spiraling out of control.
Despite partially cooling off today, all major Silver ETFs remain sharply higher for the week -- up between 8 and 9 percent over the past five sessions.
If you've ever considered buying silver but don’t want to handle coins and bars, then a silver ETF can be the solution.
Silver ETFs have delivered outstanding year-to-date (YTD) returns above 83% and one-year returns of over 55%.
According to data from the Association of Mutual Funds in India (Amfi), the industry has seven silver ETFs-- Nippon India Silver ETF, ICICI Prudential Silver ETF, Aditya Birla Sun Life Silver ETF, HDFC Silver ETF, Axis Silver ETF, Kotak Silver ETF, and DSP Silver ETF-- with an asset under management of Rs 1,792 crore as of March 2023. All these funds were launched in 2022.
The reason silver is attractive and needs to be considered is that it has the best of both asset classes—gold as well as equities
Silver not only acts as a precious metal, but also has many industrial uses. Its demand spans industry, investment and jewellery.
In case of silver ETF, the regulator prescribe that the silver ETF should allocate at least have 95 percent of the assets to silver and silver related exchange traded commodity derivatives (ETCD).
Silver has been an integral part of investors’ commodity portfolio globally. As per etfdb.com, five silver ETFs account for assets worth USD 13.7 billion.
Silver always lags behind gold price performance. Historically, gold triggers the initial move in bullion complex and, eventually, silver gains traction.
As a safe haven investment option, silver-backed ETFs have become more attractive to investors