Silver exchange-traded funds (ETFs) rallied sharply on Wednesday, tracking a strong surge in silver prices that jumped over 7% to fresh lifetime highs on the Multi Commodity Exchange (MCX), driven by robust buying momentum.
MCX silver price for March futures surged as much as 7.52% to hit a record high of ₹3,83,100 per kg. Silver May futures climbed to a peak of ₹3,95,753 per kg, while July futures scaled a new high of ₹4,14,446 per kg.
Silver ETFs Rally
Silver ETFs mirrored the rally in the underlying metal. Mirae Asset Silver ETF, Axis Silver ETF, Motilal Oswal Silver ETF, Zerodha Silver ETF, Aditya Birla Silver ETF and Nippon India Silver ETF gained over 6% each during the session.
Meanwhile, 360 ONE Silver ETF, Groww Silver ETF, SBI Silver ETF, HDFC Silver ETF, DSP Silver ETF and several others advanced more than 5%.
Commenting on the outlook, Jigar Trivedi, Senior Research Analyst at IndusInd Securities, said silver ETF prices could remain volatile in the near term, potentially moving more sharply than spot silver if leveraged or sentiment-driven flows intensify.
“Structural supply constraints, as silver is largely a by-product of other metals and cannot be easily ramped up, continue to support prices. Strong industrial demand from sectors such as solar energy, electric vehicles, electronics and emerging technology applications, along with safe-haven buying amid macroeconomic uncertainty and low or negative real yields, are further positives,” Trivedi said.
According to Trivedi, the overall outlook for silver remains bullish, and silver ETFs are likely to continue witnessing healthy investor inflows.
Gold and silver ETFs are investment vehicles that trade on stock exchanges like equities and are backed by physical gold and silver bars stored in secure vaults.
Silver prices have significantly outpaced gold prices. While demand for silver was earlier driven largely by rising industrial consumption, investment demand has emerged as a key driver in recent months
Reflecting this trend, silver ETFs recorded inflows of ₹234.7 billion in 2025, sharply higher than ₹85.69 billion in the previous year. The growing popularity of silver ETFs indicates that imports for investment purposes could increase further if the ongoing price rally sustains.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.