Gold and silver prices have corrected sharply from their recent record highs, bringing the focus back on whether the current dip offers an entry point.
On February 10, gold futures for the April 2026 contract closed at Rs 1,57,825 per 10 grams on the Multi-Commodity Exchange of India, down 0.15% on the day. Silver futures for the March 2026 contract settled at Rs 2,59,548 per kg, lower by 1.17%.
From the peaks seen in late January, silver prices are now down by roughly 35–37%, while gold has corrected by about 10–18% from its highs.
Is it time to invest in gold and silver for long-term?
The pullback follows an exceptionally strong rally and has played out across both futures and exchange-traded funds, even as longer-term returns remain elevated.
Satish Dondapati, Fund Manager – ETF at Kotak Mutual Fund, said “Gold and silver prices have corrected from their all-time highs. At current price levels, investors who missed the rally may consider investing in gold and silver ETFs with a long-term view and through a systematic investment approach.”
Gold ETFs see strong inflow in January
Gold ETFs recorded one of their strongest months of inflows in January 2026.
Data from the Association of Mutual Funds in India showed fund mobilisation into gold ETFs at Rs 24,351.58 crore during the month, while redemptions were limited to Rs 311.62 crore.
Net inflows stood at Rs 24,039.96 crore, placing gold ETFs among the top inflow-generating segments within the “Other Schemes” category.
Assets under management rose sharply as a result. Net AUM for gold ETFs stood at Rs 1,84,276.96 crore as of January 31, while the average AUM for the month was Rs 1,50,380.66 crore.
The category had 25 schemes in operation and over 1.14 crore folios. No segregated portfolios were reported for gold ETFs at the end of January.
Commenting on the flows trend in Gold and silver ETFs, AMFI Chief Executive Venkat Chalasani said
“increased allocations to gold and silver ETFs suggest a measured approach by investors toward diversification and portfolio balance.”
Silver ETFs trade at discount as prices soften
Silver ETFs reflected the weakness in MCX prices. All ETFs closed at discounts to their respective NAVs, generally in the range of about 5 to nearly 7%.
Edelweiss Silver ETF rose 1.76% to Rs 256.50, even as it traded at a 6.63% discount to NAV. Motilal Oswal Silver ETF gained 0.62% to Rs 253.04. Aditya Birla Sun Life Silver ETF, ICICI Prudential Silver ETF, Groww Silver ETF, UTI Silver ETF, Bandhan Silver ETF and Nippon India Silver ETF ended with marginal gains of under 0.2% each.
On the downside, Kotak Silver ETF fell 0.81% to Rs 247.18, Axis Silver ETF slipped 0.80% to Rs 252.32, Mirae Asset Silver ETF declined 0.68% to Rs 248.18, and 360 ONE Silver ETF dropped 0.64% to Rs 251.43. SBI Silver ETF closed at Rs 248.22, down 0.52%, while Tata Silver Exchange Traded Fund edged lower by 0.24% to Rs 24.72. HDFC Silver ETF and DSP Silver ETF saw relatively mild declines.
Trading volumes remain concentrated in large silver ETFs
Trading activity in the silver ETF segment was heavily concentrated in a handful of schemes. Tata Silver ETF led volumes with over 15.51 crore units traded.
Nippon India Silver ETF followed with more than 6.40 crore units, while Zerodha Silver ETF saw volumes exceeding 2.16 crore units. SBI Silver ETF, ICICI Prudential Silver ETF, HDFC Silver ETF and Aditya Birla Sun Life Silver ETF also recorded steady turnover, while several newer funds remained thinly traded.
One-year returns stay high, but caution remains on silver
Despite the recent correction, longer-term performance across silver ETFs remained tightly aligned. Most established schemes delivered returns in the 145–150% range over the past year.
Q4Tata Silver ETF, ICICI Prudential Silver ETF, DSP Silver ETF and Aditya Birla Sun Life Silver ETF reported gains of around 150%, while Edelweiss, Kotak, Axis, Mirae Asset, SBI and Nippon India silver ETFs posted similar returns.
At the same time, fund managers continue to draw a distinction between gold and silver at current levels.
Siddharth Srivastava, Head – ETF Product and Fund Manager at Mirae Asset Investment Managers (India), said “We expect Silver to remain volatile and investor should be cautious while investing in Silver. We prefer Gold relatively on a risk reward basis.”
He added “Any Investment right now should be from Long term point of view and focus should be on maintaining desired asset allocation.”
Conclusion
Gold and silver ETFs are trading well below their all-time highs after an exceptionally sharp rally.
With MCX prices still volatile and ETF prices trading below recent peaks, fund managers continue to emphasise staggered investing and disciplined allocation rather than chasing short-term price moves.