Gold and silver ETF assets double in six months on record inflows

Surges past Rs 1.5 trillion in November as inflow momentum sustains

Gold and silver holdings of domestic mutual funds (MFs) have more than doubled over the past six months, driven by record inflows into exchange-traded funds (ETFs) and a sharp rise in precious metal prices.

 

Gold and silver ETFs had combined assets under management (AUM) of around ₹1.6 trillion at the end of November, more than double the ₹79,319 crore in May 2025, shows data from the Association of Mutual Funds in India.

 

Inflow data derived from the latest AUM figures indicates that while the inflow momentum slowed in November, it remains elevated compared to the recent past. The ETFs likely garnered around ₹6,000 crore last month after two consecutive months of collections above ₹10,000 crore.

 

The growing investor interest in gold and silver ETFs is also reflected in new account-opening data. In the first 10 months of calendar year 2025, investment accounts or folios in gold ETFs grew 50 per cent, while silver ETFs recorded a fourfold rise.

 

Investor interest in gold and silver ETFs has surged, supported by rising precious metal prices driven by global and local factors. With geopolitical tensions, expectations of rate cuts, and a softer dollar, many investors are looking at gold and silver as safer options in the current environment. The rally has also encouraged a wave of new investors to include these metals in their portfolios.

 

“As investors seek protection from market swings, gold’s appeal remains strong, and ETFs combine this safe-haven quality with the discipline of a structured investment vehicle. Looking ahead, with factors like currency pressures, inflation risks, and global instability persisting, gold ETFs are likely to become an integral part of diversified portfolios,” said Hemen Bhatia, executive director and chief executive officer of Angel One Asset Management Company.

 

In the domestic market, gold prices are up 68 per cent over the past year. Silver prices have nearly doubled during the period.

 

Growing ETF assets, experts said, also indicate increasing acceptance of the MF offering among retail investors.

 

“This surge indicates that investors have moved beyond physical possession and are recognising gold ETFs as the more efficient vehicle, since this modern solution not only eliminates storage hassles and making charges but also offers a tax advantage — a shorter holding period to qualify for the 12.5 per cent long-term capital gains tax rate compared to physical gold,” Zerodha Fund House said in a report. 

 

Gold hits six-week high on rate-cut optimism; silver sees new peak 

Gold prices climbed to their highest level in six weeks on Monday, driven by expectations of a US interest rate cut this month and shifts in Federal Reserve leadership, while silver touched a record. 

Spot gold was up 0.6 per cent at $4,255.98 per ounce, as of 1239 GMT, its highest since October 21. US gold futures for February delivery gained 0.8 per cent to $4,290.70. Silver was up 1.9 per cent at $57.46 per ounce after hitting an all-time high of $57.86 earlier. 

Gold prices surged by ₹3,040 to ₹1,33,200 per 10 grams in the national capital on Monday, tracking strong global trends, according to the All India Sarafa Association. 

Analysts said sustained jewellery demand amid the ongoing wedding season supported the precious metal. The precious metal of 99.5 per cent purity zoomed by ₹3,040 to ₹1,32,600 per 10 grams (inclusive of all taxes). Agencies