Silver’s Rising Popularity: Why Investors Are Choosing Silver ETFs
Silver is becoming a top choice for investors, with Silver Exchange-Traded Funds (ETFs) gaining popularity. In India, the total value of silver ETFs jumped over four times, reaching ₹12,331 crore in October 2024, compared to ₹2,844.76 crore a year earlier. This sharp rise shows that more investors are turning to silver as a safe option during uncertain times and rising inflation.
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More Investors Are Choosing Silver ETFs
The number of silver ETF investors has surged. In October 2024, 4.47 lakh investors held silver ETFs, a 215% increase from 1.42 lakh in the previous year. Additionally, fresh investments in these funds rose by 24%, reaching ₹643.10 crore. Experts say silver ETFs attract investors because they offer easy storage, better liquidity, and fewer tax-related costs than physical silver.
Silver Outperform Gold ETFs
Silver ETFs have delivered impressive returns. Over the past year, they have outshined gold ETFs in performance. The average returns for different periods were:
- 1 month: 7.57%
- 3 months: 16.02%
- 6 months: 20.25%
- 1 year: 32.49%
These returns highlight silver’s dual advantage. It acts as both a safe investment, like gold, and a key industrial metal.
Global Silver Prices Are Rising
Silver prices have been climbing steadily. In February 2025, the metal hit $33.41 per ounce, the highest since October 2024. Experts predict silver may soon touch $35 per ounce, a level not seen in a decade. The surge is driven by increasing industrial demand, particularly from the solar energy sector, and fears of U.S. import tariffs.
Silver’s Future as an Investment
As inflation remains high and global tensions continue, silver are likely to attract even more investors. The strong demand for silver could lead to more ETFs launching in the future, making silver an essential part of investment portfolios.
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