ETF Investment Sparkles: Silver Volumes Jump 3.3x, Outpacing Gold This Akshaya Tritiya

Akshaya Tritiya 2025 witnessed a sharp spike in investor interest in precious metal Exchange-Traded Funds (ETFs), with combined gold and silver ETF volumes almost tripling compared to the same occasion in 2024. According to data from the National Stock Exchange (NSE), industry-wide trading volumes soared from ₹224 crore in 2024 to ₹644 crore in 2025 — a 2.9x increase.

This trend underlines the shift towards digital investment formats, especially during festivals that traditionally encourage the purchase of gold and silver.

Silver Takes the Spotlight Amid Soaring ETF Volumes

While gold ETFs demonstrated strong growth, increasing from ₹130 crore to ₹331 crore year-on-year — a 2.5x rise — silver ETFs outperformed significantly. Volumes for silver ETFs rose from ₹95 crore to ₹313 crore, registering a striking 3.3x jump.

This momentum highlights a diversification trend among investors, with silver becoming a viable alternative to gold in ETF form.

Read More: Top 5 Low-Cost Gold ETFs in India with SIPs Starting from ₹99. 

Key Drivers Behind the ETF Boom

Convenience and Accessibility

One of the major factors fuelling ETF growth is investor convenience. ETFs allow participation in the gold and silver markets through a demat account, eliminating concerns over physical storage, theft, and purity verification. This simplicity is especially appealing to younger or tech-savvy investors.

Cost and Liquidity Advantages

Unlike physical gold, which includes making charges and storage costs, ETFs offer a more cost-efficient way to invest in precious metals. They also provide better liquidity and lower transaction costs. On Akshaya Tritiya 2025, impact costs averaged 20 basis points (bps) for gold ETFs and 32 bps for silver ETFs — with some of the most liquid ETFs offering impact costs as low as 2–3 bps, according to Value Research.

Investor Sentiment and Behavioural Shifts

Traditionally, Akshaya Tritiya has been a strong driver of physical gold sales. This pattern is now extending to digital formats. The combined gold and silver ETF turnover showed a marked increase in line with festive sentiment, with silver seeing faster uptake. This suggests that retail investors are broadening their horizons, viewing ETFs as an acceptable alternative to jewellery or coins.

Silver and Gold ETFs: Growing Share in Daily Turnover

In FY25, the average daily volume for gold and silver ETFs together represented nearly 60% of the total ETF turnover. This growth in market share reflects the increasing role these products are playing in India’s broader ETF ecosystem.

Understanding the Role of Hallmarking in Gold and Silver Purchases

While ETFs gain traction, physical purchases of gold continue, especially around festive occasions. In this context, the awareness and enforcement of hallmarking standards are critical to ensuring consumer protection.

Rise in Hallmarked Jewellery

According to a survey by LocalCircles, 65% of consumers who purchased gold jewellery in the past year confirmed that their purchases were hallmarked. However, 11% reported buying non-hallmarked items, and 24% were unsure. This data points to a gap in awareness despite the rollout of the six-digit Hallmark Unique ID (HUID) from July 1, 2023.

What Does a Hallmark Represent?

Under the Bureau of Indian Standards (BIS) Act, hallmarking certifies the purity of gold or silver items and confirms testing in licensed laboratories. A hallmark typically includes:

• Purity level (e.g., 22K for 22-carat gold)

• BIS logo

• 6-digit HUID code

• Jeweller’s identification mark

Exemptions and Consumer Awareness

Hallmarking is not mandatory for certain types of jewellery, including Kundan, Polki, and Jadau pieces, items under two grams, and specific non-jewellery items like fountain pens or gold thread. Only 18% of surveyed consumers were aware that a six-digit HUID is required for hallmarked items. Despite this, 73% said that mandatory hallmarking has increased their trust in the gold buying process.

Conclusion 

The Akshaya Tritiya 2025 data highlights a clear trend: Indian investors are increasingly leaning towards digital formats like ETFs for precious metals, driven by convenience, cost savings, and liquidity. At the same time, physical gold continues to be popular, underscoring the need for better awareness of hallmarking standards to protect consumer interests in offline purchases.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.