Gold ETFs hold their shine: AUM crosses ₹1 trillion mark for the first time

Oct inflows estimated at ₹7,800 cr; silver ETF inflows also buoyant

The strong inflow momentum into gold and silver exchange-traded funds (ETFs) continued through October, even as prices of the precious metals eased in the latter half of the month.

 

Gold ETFs are estimated to have attracted about ₹7,800 crore in October, nearly matching the record ₹8,363 crore inflows seen in September. The sustained inflows and earlier rally in gold prices pushed the assets under management (AUM) of gold ETFs past the ₹1 trillion mark for the first time. The AUM, which had crossed ₹50,000 crore in January 2025, has doubled within just nine months.

 

Silver ETFs also drew strong investor interest last month. A comparison of AUM and return data for the past two months suggests the category garnered ₹4,300 crore in October. While this is high by historical standards, it remains below the all-time peak of ₹5,342 crore recorded in September.

 

“October has been another strong month for gold and silver ETFs, reflecting investors’ growing preference for regulated, transparent, safe, and convenient precious metal investment products. This also highlights gold’s strategic role and silver’s growing relevance as both financial and industrial assets,” said Vikram Dhawan, fund manager — commodities, Nippon India Mutual Fund. 

 

Silver ETFs had an AUM of ₹42,500 crore in October, up more than threefold year-to-date.

 

The steady inflows have persisted despite a correction in gold and silver prices during the latter half of the month. As of November 3, domestic gold prices were down 6.5 per cent from the record high touched on October 17. Silver prices have fallen 16 per cent from the peak of ₹1.8 lakh per kilogram recorded on October 14.

 

However, the pullback remains modest compared to this year’s sharp rally. Despite the decline, gold prices are still up 59 per cent so far in 2025, while silver has gained about 74 per cent.

 

The sharp rally in both metals this year has been driven by a mix of global and domestic factors. Escalating geopolitical tensions, expectations of interest rate cuts by major central banks, and a weaker dollar have all lifted demand for precious metals as safe-haven assets. In India, festival and wedding-season buying, coupled with steady inflows from investors seeking portfolio diversification, have further supported the uptrend.

 

The rally has also led to a pickup in new investor participation in gold and silver ETFs, which together added nearly 1 million new accounts in September. The net addition in ETFs and gold and silver fund of funds likely outshone that of active equity schemes for the first time in September.