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Gold, Silver ETF Assets Triple in Five Months to Cross ₹3 Lakh Crore
- Ripradaman R
- 14 hours ago
- 2 min read
Introduction
Investor appetite for precious metals has surged sharply.
Gold and silver ETFs have witnessed unprecedented inflows in recent months.
Assets under management have tripled, reflecting a decisive shift toward safe-haven investing.
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Sharp Growth in ETF Assets
Precious metal ETFs have expanded rapidly in a short period.
Key highlights:
Combined gold and silver ETF assets crossed ₹3 lakh crore
Assets have nearly tripled within five months
One of the fastest growth phases for commodity ETFs
This growth reflects both price appreciation and strong investor inflows.
Rising Investor Participation
Retail participation has increased meaningfully.
Key data points:
Gold ETF folios rose from 80.34 lakh to 1.14 crore
Silver ETF folios also reported strong growth
New investors are entering commodity ETFs for the first time
ETFs are emerging as the preferred route for precious metal exposure.
Why Investors Are Turning to Gold and Silver ETFs
Multiple factors are driving this trend.
Key reasons:
Record-high gold prices
Strong rally and momentum in silver
Global uncertainty and market volatility
Precious metals are being used as portfolio stabilisers.
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Role of Market Volatility and Global Factors
Macro conditions continue to favour safe-haven assets.
Key influences:
Geopolitical tensions
Expectations of global interest rate cuts
Currency and equity market volatility
These conditions have amplified demand for gold and silver ETFs.
Gold vs Silver: Different Risk Profiles
Both metals attract investors, but with distinct characteristics.
Comparison insights:
Gold offers stability and lower volatility
Silver provides higher upside with higher risk
Investors are diversifying across both
Balanced allocation is becoming increasingly common.
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What This Means for the ETF Industry
The surge has broader implications.
Industry impact:
Growing acceptance of commodity ETFs
Increased product innovation
Higher focus on investor education
Precious metal ETFs are moving closer to mainstream portfolios.
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Conclusion
Gold and silver ETFs have seen explosive growth in a short span.
Crossing ₹3 lakh crore reflects strong investor confidence in precious metals.
Sustainability will depend on global macro trends and price stability.
FAQ
Q1. Why did gold and silver ETF assets rise so sharply?
Due to strong price rallies, volatility, and safe-haven demand.
Q2. Which ETF saw higher investor participation?
Gold ETFs led, but silver ETFs also saw rapid adoption.
Q3. Are ETFs better than physical gold or silver?
ETFs offer convenience, liquidity, and transparency without storage issues.
Q4. Is this trend sustainable?
It depends on global macro conditions and investor risk appetite.
Q5. Should investors allocate to both gold and silver ETFs?
Yes, a combination can balance stability and return potential.
Citations
Association of Mutual Funds in India (AMFI)
NSE ETF Data
Bloomberg Commodities
World Gold Council
Mutual Fund Industry Reports
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