Silver ETFs beat gold in inflows for 3rd month, gain investor favour

With silver outperforming gold and industrial demand rising, silver ETFs have drawn higher inflows than gold ETFs for three consecutive months, Amfi data shows

For the first time in over two years, silver exchange-traded funds (ETFs) have attracted more investor flows than gold ETFs for three consecutive months, marking a notable shift in investor preference amid a sharp rally in silver prices.

 

Silver ETFs saw net inflows of ₹853 crore in May, nearly three times the ₹292 crore garnered by gold ETFs, according to data from the Association of Mutual Funds in India (Amfi). Since March 2025, silver ETF inflows have totalled ₹2,277 crore, compared with just ₹209 crore for gold ETFs.

 

The surge in flows appears broadbased, according to mutual fund officials, as silver ETF folios — the number of investor accounts — have risen sharply in recent months. Folios in silver ETFs jumped 35 per cent to 838,000 in the first five months of 2025.

 

On the other hand, gold ETF folios grew 15 per cent over the same period to 7.4 million, albeit from a much larger base. 

 

Silver ETFs remain a fraction of gold ETFs in size, having entered the market only in 2022. Until recently, gold outperformed silver, being the preferred option for investors in the commodity space.

 

That trend has started to shift. Over the past month, silver prices have gained more than 10 per cent, while gold has remained largely flat. Domestic silver prices reached a record ₹1.07 lakh per kg on June 10.

 

That momentum, combined with strong demand, has given silver a more bullish outlook among analysts. Silver is seeing strong investment flows, driven by a combination of tightening supply and surging industrial demand, said Chetan Kukreja, head of research for the passive business at Motilal Oswal AMC. 

 

“The market is facing a significant supply deficit of 200 million ounces in 2025 — the fifth consecutive year in which demand has exceeded supply,” he said, noting that the gold-to-silver price ratio in the international market touched a record high of 103. “This wide gap suggests silver remains undervalued relative to gold, attracting investors looking for value opportunities.”

 

The recent returns have further fuelled the appeal of silver ETFs. “With expectations of a silver supply deficit and silver ETFs delivering notably higher returns than gold in recent months, investor interest in silver continues to gain momentum,” said Varun Gupta, CEO of Groww AMC.

 

Past price trends also suggest a further rally in silver could be underway. According to analysis by Samco Securities, silver price breakouts are usually followed by sustained gains. “In 85.7 per cent of instances (where silver breaks past its previous high), it has posted positive 12-month returns, averaging 26.1 per cent,” the report said.

 

While most of the demand for silver ETFs is believed to be driven by individual investors, multi-asset funds are also playing a key role. These funds, which are the fastest-growing hybrid category in the mutual fund space, invest across equity, debt, and commodities, often using ETFs to take positions in the latter.