Silver ETFs See 126% AUM Growth in One Year, Surging Ahead of Gold Funds

Despite delivering lower returns than gold, silver exchange-traded funds (ETFs) have witnessed a significant rise in investor interest. Between June 2024 and May 2025, the assets under management (AUM) of silver ETFs jumped over 125%, far outpacing the 82% growth in gold ETFs over the same period. 

Silver ETFs Outshine Gold in Asset Growth 

In a notable shift in investor preference, silver exchange-traded funds (ETFs) have recorded more than 125% growth in assets under management (AUM) over the past year — rising from ₹7,473 crore in June 2024 to ₹16,866 crore in May 2025. This surge has outpaced the 82% AUM growth seen in gold ETFs during the same timeframe. 

Interestingly, this rapid growth has occurred despite silver underperforming gold in terms of returns. In dollar terms, gold prices rose by 43.16% between June 2024 and June 10, 2025, while silver appreciated by 23.59%. Yet, silver ETFs saw stronger net inflows, suggesting a growing appetite for the white metal. 

Rising Investor Participation in Silver ETFs 

Silver ETFs are gaining traction with retail investors in India. As of May 2025, there were over 8.37 lakh investor folios in silver ETFs — a sharp rise from just over 6 lakh folios in January 2025. 

This trend indicates that more investors are using mutual fund platforms to access silver, especially after SEBI permitted the launch of silver ETFs in November 2021. Since then, silver ETF AUM has surged past the ₹16,500 crore mark. 

In May 2025 alone, silver ETFs received net inflows of ₹853.85 crore — nearly triple the ₹291.92 crore seen in gold ETFs during the same month. 

Why the Rush Toward Silver? 

Several factors are driving this silver ETF boom: 

• Industrial Demand: Silver is widely used in industries such as solar energy, electric vehicles, and electronics, making it a critical commodity amid the green transition. 

• Diversification Appeal: Silver offers a unique blend of industrial utility and precious metal characteristics, helping investors diversify their portfolios. 

• Geopolitical Uncertainty & Inflation Hedge: Much like gold, silver is considered a safe-haven asset and a hedge against inflation during periods of economic uncertainty. 

• Supply Constraints: Since 2021, silver demand has outstripped supply, further supporting its investment case. 

Read More: ETFs record highest ever inflows at Rs 19,056 crore in April: AMFI. 

Conclusion 

While gold continues to deliver higher returns, silver ETFs are rapidly gaining ground, fueled by their lower base, industrial relevance, and growing retail investor interest. As India's mutual fund industry expands and investors seek broader diversification, silver is increasingly being seen not just as an alternative to gold, but as a strategic asset in its own right. 

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.