Silver, often called the “poor man’s gold,” has always been seen as a safe investment option during uncertain times. In recent months, Silver ETFs (Exchange Traded Funds) have started to shine again as prices move upward and investor interest returns. The question now is — Is it the right time to invest in Silver ETFs? Let’s understand what is driving this rally, what experts think, and what investors should do next.
1. What Are Silver ETFs?
Silver ETFs are investment funds that track the price of silver. Instead of buying physical silver, investors can buy these ETFs on the stock exchange just like shares. Each unit of a Silver ETF represents a certain amount of silver held by the fund.
For example, if silver prices rise by 5%, the value of your Silver ETF investment usually rises by a similar percentage. It’s an easier and safer way to invest in silver without worrying about storage, purity, or making physical purchases.
2. Why Are Silver ETFs Gaining Attention Now?
The current rise in Silver ETF prices is driven by several global and domestic factors.
- Global Uncertainty: The ongoing geopolitical tensions and global inflation are pushing investors toward precious metals like gold and silver, which are seen as safe havens.
- Industrial Demand: Silver isn’t just used for jewelry — it’s a key metal in industries like electronics, solar panels, and electric vehicles. As clean energy technologies grow, so does the demand for silver.
- Weaker Dollar Outlook: A weaker U.S. dollar often boosts precious metal prices. Since silver is traded globally in dollars, a fall in the dollar index supports higher silver prices.
- Rising Investment Demand: Investors are diversifying their portfolios by adding commodities like silver and gold to hedge against stock market volatility.
3. Recent Performance of Silver ETFs
Over the past few months, Silver ETFs have delivered impressive returns. On average, most Indian Silver ETFs have gained between 8% to 12% in the last quarter, supported by international price movements.
Funds like Nippon India Silver ETF, ICICI Prudential Silver ETF, and Aditya Birla Sun Life Silver ETF have all seen strong inflows from retail investors. The overall assets under management (AUM) of silver ETFs in India have nearly doubled compared to the previous year.
4. Expert Views on Silver ETF Investment
Different market experts have shared their opinions about the current situation and the potential of Silver ETFs. Let’s take a look at what they say.
A. Anuj Gupta (Commodity Analyst, HDFC Securities)
Anuj Gupta believes that the short-term trend of silver remains positive. According to him, “The price of silver could test higher levels in the coming months due to strong industrial demand and global uncertainty. Investors can continue to hold or accumulate Silver ETFs on dips.”
He adds that while volatility may remain, the long-term picture looks bright because of increased use of silver in renewable energy and electric vehicles.
B. Sugandha Sachdeva (Market Expert, Commodity Research)
Sugandha Sachdeva suggests that silver is entering a multi-year uptrend phase. She says, “Silver has a dual nature — it acts both as an industrial metal and a precious asset. With global green energy transition, silver’s demand base is widening. This could push prices higher in the next 1–2 years.”
She recommends systematic investments in Silver ETFs for those who can stay invested for at least two to three years.
C. Naveen Mathur (Director, Anand Rathi Shares & Stock Brokers)
Naveen Mathur advises investors to keep silver as part of a diversified portfolio. He explains, “Silver ETFs are a good way to gain exposure without handling physical metal. However, investors should not expect quick profits. A balanced approach with long-term holding will yield better results.”
He also mentions that silver tends to outperform gold in periods of economic expansion, making it a good hedge when markets are recovering.
D. Ravindra Rao (VP, Head of Commodity Research)
Ravindra Rao says that silver may continue to show strength as global industrial output picks up. “If inflation remains sticky and central banks delay rate cuts, precious metals will continue to benefit,” he adds.
However, he cautions that since silver prices are more volatile than gold, investors should have patience and not panic during short-term corrections.
Read Also: From Rs 1.8 Lakh to Rs 2.4 Lakh per kg: Indian Silver Market’s 2026 Vision
5. Silver vs Gold — Which is Better Now?
Gold and silver often move in the same direction, but silver is usually more volatile. Historically, silver tends to outperform gold during bull markets in precious metals.
- Gold is considered a safer hedge against inflation and currency fluctuations.
- Silver has both investment and industrial demand, giving it additional growth potential.
Right now, experts believe silver has more upside potential because of its strong industrial usage and growing role in renewable technologies like solar energy.
Read Also: TATSILV Share Falls: Why Tata Silver ETF Dropped and What’s Next?
6. Key Drivers of Silver Prices in Coming Months
According to experts, the following factors will influence silver’s price movement in the next few months:
- Global Inflation and Interest Rates: If inflation remains high and central banks, especially the U.S. Federal Reserve, delay rate cuts, investors will continue to seek refuge in silver.
- Industrial Demand Growth: Silver is a key component in solar panels, semiconductors, and electric vehicles. As these sectors expand, silver’s demand will rise.
- Investment Demand: More investors are using ETFs for commodities exposure. The inflow into Silver ETFs will keep supporting prices.
- Geopolitical Tensions: Uncertainty due to global conflicts or economic instability will keep safe-haven demand alive.
7. Risks to Consider Before Investing
While silver’s outlook is positive, investors should also consider its risks:
- High Volatility: Silver prices can move sharply in short periods.
- Global Dependence: Prices are affected by global market conditions and the U.S. dollar movement.
- Short-Term Corrections: Even during long-term uptrends, silver can see temporary pullbacks.
- No Regular Income: Unlike bonds or dividends from stocks, silver investments don’t provide regular returns.
Therefore, experts recommend investing through SIPs (Systematic Investment Plans) in Silver ETFs instead of making a large lump-sum investment at once.
8. Who Should Invest in Silver ETFs?
Silver ETFs are suitable for:
- Diversified Investors: Those who already have equity and debt exposure can add silver for balance.
- Long-Term Investors: People who can hold for at least 2–3 years to ride out volatility.
- Those Seeking Inflation Hedge: Silver, like gold, helps protect purchasing power when inflation rises.
- Small Investors: Silver ETFs allow investing with small amounts compared to buying physical silver.
If you are new to commodities, starting with small SIPs in Silver ETFs is a good way to build exposure safely.
9. How to Invest in Silver ETFs
Investing in Silver ETFs is simple:
- Open a Demat and trading account with any registered broker.
- Search for available Silver ETFs like:
- Nippon India Silver ETF
- ICICI Prudential Silver ETF
- Aditya Birla Sun Life Silver ETF
- HDFC Silver ETF
You can buy and sell units during market hours just like shares.
For long-term investing, you can also consider Silver ETF Funds of Funds (FoFs), which can be bought directly like mutual funds without a Demat account.
10. Future Outlook of Silver ETFs
Experts predict that silver prices could remain bullish in the medium to long term. Many analysts expect silver to move toward $32–$35 per ounce globally if economic growth stays moderate and industrial demand continues to rise.
In India, if silver prices stay firm internationally and the rupee weakens slightly, domestic Silver ETFs may offer 10–15% returns over the next year, depending on market movements.
However, short-term corrections are possible if global markets stabilize or if interest rates rise again.
11. What Investors Should Do Now
- Short-Term Traders: Can take partial profits if they have already gained from the recent rally.
- Long-Term Investors: Should continue systematic investments or buy on dips.
- New Investors: Can start with small amounts and gradually increase exposure.
As Anuj Gupta summarizes, “Silver has the potential to outperform gold in the next two years, but it is a high-volatility asset. Investors should stay patient and invest systematically.”
Final Thoughts
Silver ETFs are once again shining as a strong alternative investment option for 2025 and beyond. With increasing industrial use, rising investor demand, and supportive macroeconomic trends, the long-term story of silver looks promising.
However, investors should remember that silver is not a quick-profit asset. It rewards those who think long-term, invest smartly, and stay consistent. Diversifying your portfolio with 5–10% exposure to Silver ETFs can provide both safety and growth potential.
As Sugandha Sachdeva rightly said,
“Silver is no longer just a metal of tradition — it’s a metal of the future.”
Disclaimer: The information provided in this article is for educational and informational purposes only. It should not be considered as financial or investment advice. Market conditions and prices of Silver ETFs may change based on global and domestic factors.
Investors are advised to consult a certified financial advisor or conduct their own research before making any investment decisions. The author and the website are not responsible for any losses arising from the use of this information.