Silver ETFs See 125% AUM Growth in a Year, Outshine Gold ETFs

Silver ETFs See 125% AUM Growth in a Year, Outshine Gold ETFs

Retail interest surges as silver prices hit 13-year high; folios cross 8.3 lakh

Mumbai: Silver exchange-traded funds (ETFs) are gaining momentum in Indian markets, posting a staggering 125.68% rise in assets under management (AUM) over the past year. According to AMFI data, AUM jumped from ₹7,473 crore in June 2024 to ₹16,866 crore in May 2025, outpacing the 81.78% growth seen in gold ETFs during the same period.

The rally reflects a growing shift in investor preference, with silver gaining ground as both a safe-haven asset and industrial commodity.

🔼 Retail Surge: Folios Cross 8.37 Lakh

Investor participation is rising rapidly, with silver ETF folios crossing 8.37 lakh in May, up from over 6 lakh in January 2025. This surge highlights growing retail adoption of silver through mutual funds, especially via ETFs and fund-of-fund (FoF) structures.

💹 Market Momentum: Silver at 13-Year High

Silver prices surged over 9% last week, reaching their highest levels since 2012. Analysts attribute this to a combination of geopolitical tensions, supply constraints, and inflation concerns.

“ETF open interest rose nearly 6%, and silver-backed ETFs posted their strongest weekly gains since February,” said Riya Singh, Research Analyst at Emkay Global.

⚖️ Gold-Silver Ratio Drops, Silver Plays Catch-Up

The gold-silver ratio – a key indicator of relative value – fell from over 100 in April to around 92 in May, suggesting room for silver to further catch up.

“Supply remains constrained. Inventories are at multi-year lows. Macro tailwinds are strong,” Singh added.

🧭 Expert View: Diversification Still Key

Fund managers are optimistic but cautious.

“Silver funds benefit from rising industrial demand, inflation hedging, and geopolitical uncertainty,” said Satish Dondapati, VP & Fund Manager at Kotak AMC.
“However, silver is trading near a 13-year high. Volatility and interest rate sensitivity remain major risks.”

He advises investors to diversify portfolios and maintain a long-term perspective.

🏛️ Regulatory Backdrop & Product Growth

Since SEBI permitted silver ETFs in late 2021, fund houses have launched multiple products, expanding access for retail investors. The silver ETF market has grown steadily, now becoming a credible complement to gold in portfolios.

📌 Key Highlights: