Silver ETFs See First Net Outflow in Over 2 Years as Prices Surge

India’s silver exchange-traded funds (ETFs) recorded their first net outflow in 27 months in February 2026, as a sharp rally in silver prices prompted investors to book profits.

According to the latest data, silver ETFs received gross inflows of ₹4,628 crore during February, while redemptions stood at ₹5,455 crore, resulting in a net outflow of ₹826.3 crore. This marks the first monthly net outflow since November 2023. The reversal comes after a strong inflow trend, including net inflows of ₹9,463.40 crore recorded in January 2026.

Silver Prices Rally Sharply in Recent Months

Silver ETFs have seen growing investor interest in recent years as investors increasingly used the instrument to gain exposure to precious metals without holding physical silver. The outflows come at a time when silver prices have witnessed an extraordinary rally over the past several months.

In February 2026, silver prices rose about 10%, following a 19% increase in January. So far in calendar year 2026, silver has gained nearly 20%.

The rally began toward the end of last year. Prices had surged 27% in December 2025 and 16% in November 2025. For the full year 2025, silver delivered an exceptional 148% gain, after rising 22% in 2024.

The strong momentum attracted significant investor flows into silver ETFs. During 2025, silver ETFs saw total inflows of ₹23,472 crore, sharply higher than ₹8,568 crore in 2024.

However, the rapid price appreciation appears to have encouraged investors to lock in gains.

Gold ETFs See Moderate Inflows

Meanwhile, gold ETFs also saw a moderation in inflows during February. Investors allocated ₹5,255 crore into gold ETFs, a sharp decline compared with ₹24,039.96 crore recorded in January 2026.

Read more: SEBI Mandates Domestic Spot Pricing for Gold and Silver ETFs from April 1, 2026.

Conclusion

After a strong rally that attracted heavy investor participation, silver ETFs in India have recorded their first monthly net outflow in over two years, signalling profit booking and portfolio rebalancing.

While the long-term outlook for precious metals remains linked to global macroeconomic trends and inflation expectations, analysts expect near-term consolidation as investors digest the sharp gains recorded over the past year.

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