'FOMO Buying': Silver ETFs Gain Traction As Precious Metal Surges 30% Within A Month

Last Updated:October 10, 2025, 13:01 IST

Nippon India Silver ETF is currently trading at Rs 154 a unit on the NSE, which is 28.5% higher than the level a month ago and nearly 78% higher than the Rs 86 recorded a year ago.

Silver ETF India: Silver prices are showing no signs of a halt as the precious metal has gained nearly 30% within a month. As a result, investors are rushing to buy silver ETFs, a digital way to buy gold through the stock exchanges, to ride on the momentum. Silver ETFs are currently trading in the mid-triple-digit range, reflecting the recent surge in silver prices.

The Nippon India Silver ETF is currently trading at Rs 154 a unit on the NSE, which is 28.5% higher than the level a month ago and nearly 78% higher than the Rs 86 recorded a year ago. The HDFC Silver ETF is trading at Rs 155.8 a unit, while the ICICI Prudential Silver ETF is at Rs 158 a unit.

In the international market, silver prices have surged past the $50 mark for the first time on October 9, driven by robust demand. In the spot market in India, domestic prices touched Rs 1.63 lakh per kg, sparking renewed investor interest in the white metal.

Investors who had previously avoided silver are now rushing into silver exchange traded funds (ETFs), even at steep premiums to their indicative net asset values (NAVs).

“On the NSE, leading ETFs like SBI Silver, HDFC Silver, and Axis Silver are up 9–13 percent (9th October closing), trading well above their net asset values. Ironically, while ETFs have been soaring, MCX silver December futures slipped 0.6 percent, indicating that sentiment-driven retail enthusiasm, not fundamentals, is fuelling the chase,” said Apurva Sheth, head of market perspectives & research at SAMCO Securities.

Sheth described the current trend as “the classic case of FOMO buying”, with investors piling into silver ETFs simply to avoid missing out. He added that the spot market is showing signs of short-term overheating.

Analysts said that during such rallies, when physical supply tightens and market makers struggle to source silver, ETFs often trade at a premium, a reflection of short-term demand-supply imbalances rather than overvaluation.

In response to the frenzy, Kotak Mutual Fund on October 9 temporarily suspended lump-sum investments in its Kotak Silver ETF Fund of Fund, citing “sharp spot premiums over import parity prices”.

Kotak AMC’s managing director Nilesh Shah said the move was a prudent step to safeguard investors’ interests, as fresh lump-sum investments had become inefficient at prevailing premiums. SIPs and redemptions will continue as usual.

Kotak MF clarified that the underlying Kotak Silver ETF remains open for trading and will resume fresh subscriptions once premiums normalize. The fund house maintained its long-term bullish stance on silver, highlighting its importance in the global energy transition and as a hedge against volatility.

Sheth advised caution: “ETFs trading at a premium is not the best time to enter. Wait for prices to cool or for NAVs to realign with the market. The long-term story for silver remains strong but timing your entry is crucial.”

How to Buy Silver ETFs in India?

Buying silver ETFs in India is simple and can be done through any demat and trading account, just like stocks. Investors can log in to their broker’s platform (like Zerodha, Groww, or Angel Broking), search for the desired silver ETF, such as Nippon India Silver ETF, SBI Silver ETF or HDFC Silver ETF, and place a buy order at the current market price.

Each unit represents a small quantity of silver, and prices move in line with the metal’s market value. It’s an easy way to gain exposure to silver without worrying about storage or purity, making it ideal for those looking to diversify their portfolio.

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