Retail investors betting big on Silver ETFs amidst domestic inflationary pressures and geopolitical instability: ICRA Analytics
Silver sales witnessed a sharp spike ahead of Dhanteras this year and investors were not just buying it in physical form but were also investing in ETFs (Exchange Traded Funds). Silver ETFs registered an unprecedented surge with the Assets under Management (AUM) growing by over four-fold to touch Rs 12,331 crore in October 2024, up from Rs 2844.76 crore in October 2023, said ICRA Analytics.
The total number of folios under Silver ETFs increased by nearly 215% to touch 4.47 lakh in October 2024, up from 1.42 lakh in the same period last year. Net inflows grew by 24% at Rs 643.10 crore in October 2024, as against Rs 518.02 crore last year.
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“The number of Silver ETFs, which stood at 8 in April 2023, has increased to 12 in August 2024. If domestic inflationary pressures and geopolitical instability continue to persist, then silver may continue to witness upbeat demand. The market may see the launch of more Silver ETFs in the coming months as its role in investor portfolio diversification, investment and management becomes more crucial,” said Ashwini Kumar, Senior Vice President and Head Market Data, ICRA Analytics.
“Silver ETFs managed to garner attention of the investors within a short period of time. It is being increasingly preferred over physical form as investing in physical silver is challenging due to storage related issues. Moreover, buying of physical silver may incur GST costs which unregistered
