Silver ETFs in Focus as Global Silver Prices Witness Record One-Day Fall Ahead of Budget 2026

While Finance Minister Nirmala Sitharaman’s Budget 2026 speech remains the key event for Indian markets, attention has also shifted to Silver Exchange Traded Funds (ETFs) after a sharp commodity meltdown in global markets late Friday night. A historic fall in global silver prices has raised fresh concerns around volatility, liquidity, and investor risk in silver-linked products.

Record Crash In Global Silver Prices

Silver spot prices collapsed nearly 37% intraday on Friday in global markets, marking the biggest single-day fall ever recorded for the white metal. The sudden sell-off wiped out trillions in market value and triggered panic across commodity markets.

The fall was driven by a stronger US Dollar following the nomination of Kevin Warsh as the next Chair of the US Federal Reserve. Alongside this, large-scale liquidation of leveraged positions added to selling pressure, turning a weak trend into a full-blown market rout. Reflecting the severity of the move, some Silver ETFs listed on Wall Street reportedly declined by as much as 60% during the session.

Indian Silver ETFs Already Under Pressure

Indian Silver ETFs had already come under pressure during regular market hours on Friday, as global silver prices started falling while Indian markets were open. Most domestic Silver ETFs declined between 15% and 20% during the session.

However, the sharper leg of the global fall occurred after Indian markets had closed, raising concerns of further downside when trading resumes. Nippon AMC Silver BEES ended Friday’s session 18.6% lower at ₹286.48.

Other Silver ETFs offered by fund houses such as ICICI Prudential and Zerodha also saw steep declines in the range of 15% to 20%, reflecting the sharp global correction.

Circuit Limits And Liquidity Concerns

The steep fall has led to worries among investors about whether they will be able to exit their positions if the decline continues. Nippon AMC clarified that Silver ETFs are subject to a circuit limit of 20% from the T-2 Net Asset Value (NAV). If prices fall beyond this limit, trading in the ETF is halted for the day.

This circuit filter applies to all ETFs across the industry and is designed to limit extreme volatility. However, in rapidly falling markets, such halts can also restrict liquidity and delay exits for investors.

Read more: Union Budget 2026: Fiscal Deficit, Taxation, GST and Other Key Indicators to Watch.

Conclusion

The historic crash in global silver prices has placed Indian Silver ETFs firmly in the spotlight just as markets digest Budget 2026. While circuit limits offer temporary protection against sharp swings, the episode highlights the risks involved in highly volatile commodities. Investors should closely track global developments and fully understand product risks before taking exposure.

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. 
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.