The rise in ETFs came as Brent crude moderated to USD 107 per barrel after surging to USD 119.13 a barrel in the previous session.
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.
The sharp fall in domestic gold and silver ETFs today largely reflects the steep global correction in precious metals on Tuesday, when Indian equity markets were closed for a holiday. Silver-linked ETFs saw the steepest declines, while gold ETFs also traded lower.
For investors, the situation underscores the importance of disciplined asset allocation rather than tactical speculation
The surge in gold and silver ETFs tracked firm gains in underlying bullion prices. At around 09:30 am, when the Sensex was down 959 points and the Nifty slipped 1.15 percent to 24,889 -- gold and silver-linked ETFs were among the major gainers.
Silver ETFs rose sharply by as much as 6 percent on Monday, as safe haven demand rose after the United States Supreme Court struck down President Donald Trump's broad tariffs. Gold ETFs also rose by over 2 percent, tracking the underlying bullion prices.
Silver futures for March 5, 2026 delivery rose nearly 3 percent, gaining Rs 6,565 to Rs 2,43,000 per kg on the MCX.
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.
Gold and silver ETFs together attracted inflows of Rs 33,500 crore during the month, surpassing equity fund inflows of Rs 24,029 crore.
Silver ETFs can sometimes perform worse than silver during sharp price corrections due to temporary divergences between the ETF’s traded price and its iNAV/NAV
ETFs remain effective instruments when price discovery is orderly. When it is not, outcomes become uneven — even in rising markets. So, participating in a bull market is not only about choosing the right asset. It is also about ensuring that the chosen instrument allows the investor to actually receive the return the asset delivers.
Indian silver ETFs often trade at sharp premiums or discounts due to strong retail demand and supply constraints, but investors are advised to stay invested as structural drivers for silver remain intact.
Silver futures for March delivery skyrocketed by Rs 13,553 to hit a record of Rs 3,01,315 per kilogram on the MCX.
Recent research and market reports indicate that industrial demand for silver is expected to grow faster than the supply that will enter the market, creating an anticipated demand–supply gap.
Gold ETFs have delivered over 32 percent return in three years compared to 35 percent by Silver ETFs during the period.
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%.