By buld_online 
Silver exchange-traded funds (ETFs) are witnessing an unprecedented surge in investor interest, with assets under management (AUM) rising by 125.68% in the past year—significantly outpacing gold ETFs. This marks a pivotal shift in investment trends, driven by silver’s dual role as a precious and industrial metal, recent price rallies, and sustained demand from key sectors.
According to data from the Association of Mutual Funds in India (Amfi), silver ETFs garnered net inflows of Rs 853.85 crore in May 2025, nearly three times the Rs 291.92 crore collected by gold ETFs. Cumulatively, between March and May 2025, silver ETF inflows reached Rs 2,277 crore, compared to just Rs 209 crore in gold ETFs. This surge marks the first time in over two years that silver has consistently outperformed gold ETFs in terms of investor inflows for three consecutive months.
What’s driving the silver rush?
Silver prices have surged more than 10% over the past month, reaching an all-time domestic high of Rs 1.07 lakh per kg on June 10. Analysts attribute this to tightening global supply and robust industrial demand, particularly from sectors like solar energy and electric vehicles. In contrast, gold prices have remained relatively flat, prompting a reallocation of investor interest.
“Silver prices have begun to rally recently, which has triggered increased interest among investors in silver funds,” said Nilesh D Naik, Head of Investment Products at Share.Market. “Unlike gold, silver prices are influenced by industrial demand and are more sensitive to economic cycles. It’s a highly volatile commodity—its price swings have historically been more than double that of gold. Silver funds are better suited for tactical allocations and aggressive investors with a strong view on future price movements,” he added.
Widening investor participation
Silver ETF folios have jumped 35% in 2025 alone, reaching 8.38 lakh by May—highlighting growing retail participation. In comparison, gold ETF folios grew 15% during the same period to 74 lakh, although from a significantly larger base.
The AUM of silver ETFs rose from Rs 7,473.34 crore in June 2024 to Rs 16,866.20 crore by May 2025. Gold ETFs, while still dominant, grew by a comparatively lower 81.78%—from Rs 34,355.75 crore to Rs 62,452.94 crore over the same period.
Silver ETFs entered the Indian market in 2022, following the Securities and Exchange Board of India’s (SEBI) permission for their launch in November 2021. Despite being relatively new, their popularity has surged in recent months, indicating growing investor confidence in the asset class.
Balancing risk and opportunity
Silver’s rise isn’t without risk. Its volatility and industrial dependence make it more vulnerable to economic shifts than gold. “Silver may be suitable for aggressive investors, but risk-averse individuals should approach it cautiously,” Naik advised.
Still, silver’s growing utility and role as a hedge against inflation are adding to its allure. As global uncertainties persist, silver ETFs offer investors a unique opportunity for diversification and potential growth, provided they understand the associated risks.
Top-performing silver ETFs
The top-performing silver ETFs over the past year include Axis Silver ETF, which leads with a 19.60% return, followed closely by HDFC Silver ETF at 19.55%. These funds invest directly in physical silver or track silver prices, offering investors exposure to the metal’s price movements.
The Axis Silver FoF – Direct Plan and HDFC Silver ETF FoF – Direct Plan provide indirect access through fund-of-funds structures, making them accessible even without a demat account. Aditya Birla Sun Life Silver ETF, also among the top performers, delivered 18.84% returns, highlighting rising investor interest in silver as an alternative asset class.