Last Updated:
Silver rebounds after a brutal crash; ETFs surge as value buying returns. Experts explain how to choose the right Silver ETF.
Silver ETFs
Silver ETFs: The last few weeks have marked one of the most turbulent phases for precious metals in recent years. What began as a strong, conviction-driven rally in gold and silver gradually turned speculative — especially in silver — before flipping into a steep correction that wiped out gains and exposed fragile market liquidity. Silver ETFs moved in tandem with this volatility.
Silver prices on MCX rebounded 6% in intraday trade on Tuesday, building on the previous session’s recovery as bargain hunting emerged after a brutal correction. Prices had plunged more than 46% from their peak within just three sessions. Gold also extended its rebound.
MCX silver climbed 6% to an intraday high of ₹2,84,094 per kg, while MCX gold advanced 3% to ₹1,58,420 per 10 grams. In the ETF segment, silver ETFs surged up to 9% intraday, with SBI Silver ETF, Zerodha Silver ETF, Nippon India Silver ETF and Kotak Silver ETF rising over 8% each.
The bounce followed the India–US trade deal announcement by US President Donald Trump, which helped improve overall market sentiment. Still, investors remain cautious, keeping an eye on geopolitical developments, currency trends, and expectations around US Federal Reserve leadership.
Key questions for Silver ETF investors
What is a Silver ETF?
A Silver ETF is an exchange-traded fund that tracks the price of physical silver. It offers exposure to the metal without the need for storage or insurance. Units trade on stock exchanges like shares and typically mirror silver prices after accounting for a small expense ratio.
How should investors choose a Silver ETF?
According to Siddharth Srivastava, Head – ETF Product & Fund Manager at Mirae Asset Investment Managers (India), liquidity on the exchange and a low expense ratio should be the primary criteria. Investors can also consider tracking error and how efficiently the ETF reflects underlying silver prices on the exchange.
Why can short-term return comparisons mislead?
Srivastava warns that focusing on short-term performance often pushes investors toward reactive decisions, instead of evaluating whether the asset class fits their long-term portfolio strategy.
Why do silver ETFs see sharper moves during corrections?
Silver is structurally more volatile than gold due to its smaller market size and higher speculative participation. When positions unwind, corrections can be amplified.
What do investors often get wrong when prices fall?
Sharp declines should not automatically be seen as buying opportunities, nor should they trigger panic selling without assessing portfolio alignment and risk tolerance.
Silver technical outlook
The recent plunge in silver was not just sentiment-driven but also linked to forced liquidations after margin hikes increased collateral requirements.
NS Ramaswamy, Head of Commodity & CRM at Ventura, said silver is likely to trade in a range of $72–$78, with a breakout above $80 needed to confirm a sustained recovery. He noted that higher margin requirements forced traders to liquidate positions, accelerating the fall.
Over the longer term, he added, elevated prices could rebalance supply-demand dynamics and help correct the structural deficit that had previously supported silver’s rally.
Click here to add News18 as your preferred news source on Google.
February 04, 2026, 15:09 IST
Read More