Last Updated:
Silver has given a powerful return of 20.25 per cent up to now six months, in contrast with gold’s return of 10.29 per cent.
The whole variety of folios beneath silver ETFs elevated by almost 215 per cent to the touch 4.47 lakh in October 2024.
Silver gross sales witnessed a pointy spike within the current weeks, particularly forward of Dhanteras this 12 months. Investors not solely purchased it in bodily kind but additionally within the type of exchange-traded funds (ETF). Silver has given a powerful return of 20.25 per cent up to now six months, in contrast with gold’s return of 10.29 per cent.
Rating company ICRA in its report stated the whole variety of folios beneath silver ETFs elevated by almost 215 per cent to the touch 4.47 lakh in October 2024, up from 1.42 lakh in the identical interval final 12 months. Net inflows grew by 24 per cent at Rs 643.10 crore in October 2024, as in opposition to Rs 518.02 crore final 12 months.
Silver ETFs registered an unprecedented surge with the belongings beneath administration (AUM) rising by over four-fold to the touch Rs 12,331 crore in October 2024, up from Rs 2,844.76 crore in October 2023, it added.
While gold ETFs have been out there for fairly a while now, silver ETFs had been launched as lately as 2022.
| Average Returns (in %) | ||||
| 1 Month | 3 Months | 6 Months | 1 Year | |
| Silver ETFs | 7.57 | 16.02 | 20.25 | 32.49 |
| Gold ETFs | 5.32 | 14.29 | 10.29 | 28.07 |
Note: Returns as on October 31, 2024. (Source: ICRA Analytics)
According to ICRA, the common returns for a 1-month, 3-months, 6-months and 1-year interval was within the vary of seven.57 per cent, 16.02 per cent, 20.25 per cent and 32.49 per cent respectively. This is in distinction to a median return of 5.32 per cent, 14.29 per cent, 10.29 per cent and 28.07 per cent generated by Gold ETFs over 1-month, 3-months, 6-months and 1-year length respectively.
| Absolute | Compound Annualised | |||
| Scheme Name | 1 Month | 3 Months | 6 Months | 1 Year |
| UTI Silver Exchange Traded Fund | 8.07 | 16.80 | 19.17 | 33.13 |
| Nippon India Silver ETF | 7.58 | 15.94 | 19.82 | 32.27 |
| Mirae Asset Silver ETF | 7.57 | 15.96 | 19.87 | 32.36 |
| Kotak Silver ETF | 7.60 | 16.03 | 19.96 | 32.49 |
| HDFC Silver ETF | 7.58 | 15.97 | 22.53 | 33.00 |
| DSP Silver ETF | 7.59 | 16.04 | 20.09 | 32.57 |
| Axis Silver ETF | 7.60 | 16.04 | 21.98 | 31.43 |
| Aditya Birla Sun Life Silver ETF | 7.62 | 16.05 | 20.03 | 32.61 |
Note: Absolute returns for lower than 1 12 months; compound annualised returns for larger than or equal to 1 12 months. Returns as on October 31, 2024. (Source: ICRA Analytics)
Ashwini Kumar, senior vice-president and head (market knowledge) at ICRA Analytics, stated, “The variety of silver ETFs, which stood at 8 in April 2023, has elevated to 12 in August 2024. If home inflationary pressures and geopolitical instability proceed to persist, then silver might proceed to witness upbeat demand. The market may even see the launch of extra Silver ETFs within the coming months as its position in investor portfolio diversification, funding and administration turns into extra essential.”
Silver ETFs managed to garner the eye of the traders inside a brief time period. It is being more and more most popular over bodily kind as investing in bodily silver is difficult attributable to storage-related points, he added.
“Silver costs are anticipated to stay enticing because the expectation is that the U.S. Federal Reserve will proceed to chop rates of interest within the coming months giving a lift to silver costs. Besides, geopolitical tensions might immediate risk-averse traders to spend money on safe-haven belongings like silver. Demand for silver is anticipated to stay upbeat attributable to its utilization in electronics and inexperienced applied sciences. Moreover, traders typically choose funding in silver for portfolio diversification and it’s typically seen as a hedge in opposition to inflation. This aside, reduce in customs obligation and alter in taxation construction has made silver funding extra enticing,”
Kumar stated.
