Silver ETFs have witnessed investor demand go through the roof in the past year, with their assets under management (AuM) more than doubling, outpacing the growth seen in gold ETFs, despite the rally in gold prices.
AuM of silver ETFs went up to Rs 16,866.20 crore in May 2025—a growth of 125.68 per cent compared to Rs 7,473.34 crore in June 2024. Relatively, the AuM of gold ETFs grew 81.78 per cent over the same period, with AuMs going up from Rs 34,355.75 crore in June 2024 to Rs 62,452.94 crore in May 2025.
This increase comes despite the rise in gold prices. Gold rose 43.16 per cent on the dollar side between June 2024 and June 10, 2025, while silver rose 23.59 per cent. A lower base and rising investor interest have supported the AuM increase of silver.
Silver ETFs boasted over 8.37 lakh investor folios in May 2025, rising from around 6 lakh in January, reflecting increasing retail demand. Silver ETFs' net inflow in May was Rs 853.85 crore, nearly three times the Rs 291.92 crore that gold ETFs collected in the month.
Earlier in 2021, silver ETFs were introduced in India after the Securities and Exchange Board of India (SEBI) allowed fund houses to launch them from November 2021 onwards. AuM in silver ETFs has now surpassed the Rs 16,500 crore mark, driven primarily through the synergy of retail acceptance and fund house launches.
Aside from its demand as a precious metal, silver is also an important metal for various industries. Silver is essential for the manufacturing of various goods such as solar panels, electric cars, and electronics and also continues to see demand in jewellery and photography. Demand for silver has been exceeding supply globally since 2021, underpinning its investment appeal.
While silver remains more prone to fluctuations than gold, it is increasingly being seen by investors as a diversification tool, especially with gold prices reaching an all-time high. However, sovereign gold bonds also carry the tax benefit which silver ETFs lack and are more likely to be affected by price volatility.
