
Beyond gold's glow: Silver ETFs are catching the shine
Subscribe to enjoy similar stories. For years, gold has been the go-to hedge in times of economic uncertainty. But now, another precious metal is stealing some of its lustre.
Silver is emerging as a sought-after asset, with investors pouring money into exchange-traded funds (ETFs) tracking the metal as they seek diversification in a volatile market. Read this | Mint Primer: The gold rush for silver is on. Will it persist? Silver exchange-traded funds (ETFs) in India have seen explosive growth.
By the end of February 2025, the number of silver ETFs had risen to 12, with the monthly average assets under management (AUM) surging to ₹14,017.53 crore—more than triple the ₹4,069.90 crore held by 11 ETFs a year earlier, according to Prime Database. The momentum hasn’t slowed. March saw two more ETF launches—one from Zerodha Fund House and another from 360 ONE Asset—underscoring the rising investor interest in silver as both a safe-haven asset and an industrial powerhouse.
India’s capital markets regulator, the Securities and Exchange Board of India (Sebi), first allowed asset managers to launch silver ETFs in 2021. Since then, demand has steadily climbed, and analysts say the rally is far from over. Long valued as a safe-haven asset, silver is also a crucial material for high-growth industries.
Silver is not just a precious metal—it is the best conductor, even better than aluminum, making it a key player in next-generation industries, notes Raghav Iyengar, chief executive, 360 ONE Asset. The metal is critical to solar panels, electric vehicle (EV) batteries, medical equipment, and water purification technologies. Beyond its industrial uses, silver is gaining traction as a reserve asset.
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