Silver seems to be having a moment. For the first time in over two years, silver exchange-traded funds (ETFs) have consistently outpaced gold ETFs in investor flows—three months in a row. And it's not a marginal lead either.
In May alone, silver ETFs clocked in net inflows of ₹853 crore—almost three times more than the ₹292 crore that trickled into gold ETFs, according to data from the Association of Mutual Funds in India (Amfi). Since March 2025, silver has pulled in ₹2,277 crore in ETF investments, dwarfing the ₹209 crore for gold in the same period.
It’s not just the money that’s pouring in—investor participation is rising too. The number of silver ETF folios jumped by a sharp 35% in the first five months of 2025, reaching 838,000. Gold ETF folios still dominate in absolute numbers, standing at 7.4 million, but their growth has been slower at 15%.
The surge in interest is especially notable because silver ETFs only hit the Indian markets in 2022. Until recently, gold had held the upper hand, both in performance and popularity. But that equation seems to be shifting—fast.
Domestic silver prices have climbed more than 10% in the past month, with rates hitting a record ₹1.07 lakh per kg on June 10. In contrast, gold prices have stayed mostly flat during the same period. That price action has likely caught the eye of investors chasing better short-term returns.
The bullish tilt toward silver isn’t entirely emotion-driven either. Market watchers point to a deeper supply-demand imbalance. “The market is facing a significant supply deficit of 200 million ounces in 2025—the fifth year in a row where demand has outstripped supply,” said Chetan Kukreja, head of research at Motilal Oswal AMC.
Another factor pushing silver’s appeal is its price relative to gold. The gold-to-silver ratio in international markets has touched 103—an unusually wide gap. In simple terms, it now takes 103 ounces of silver to buy a single ounce of gold. Many believe this implies silver is undervalued, making it an attractive buy for those hunting for value.
Varun Gupta, CEO of Groww AMC, according to Business Standard, notes that silver ETFs have delivered better returns than gold ETFs in recent months. “With expectations of a continued supply crunch and rising returns, silver is drawing in more attention from investors,” he said.
A study by Samco Securities suggests that silver rallies often have legs. Whenever silver breaks past its previous highs, it has posted positive returns over the next 12 months in 85.7% of cases, with an average return of 26.1%.
While retail investors are driving most of the current momentum, fund houses say multi-asset funds are also jumping into the silver bandwagon, especially as part of portfolio diversification strategies.
