Silver ETFs fall up to 4% on Friday; still up as much as 86% YTD

Silver ETFs Fall Today: Year-to-date (Y-T-D), Multi Commodity Exchange (MCX) spot gold is up 60 per cent, and MCX spot silver has jumped 84 per cent, per Bloomberg

Silver ETF Price Today: Silver Exchange-traded funds (ETFs) retreated on Friday, a day after a sharp run-up, as concerns of a premium over their indicative net asset values (iNAVs) hit investors, with one fund announcing a temporary suspension of lump-sum and switch-in investments.

 

Year-to-date (Y-T-D), Multi Commodity Exchange (MCX) spot gold is up 60 per cent, and MCX spot silver has jumped 84 per cent, per Bloomberg.

 

As of 1:00 PM, HDFC Silver ETF fell 3.9 per cent, Kotak Silver ETF slipped 2.9 per cent, Nippon India Silver ETF slipped 1.1 per cent, ICICI Prudential Silver ETF was down 0.24 per cent, SBI Silver ETF was down 0.6 per cent, and Axis Silver ETF was down 0.5 per cent.

 

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Despite the pullback, silver ETFs remain sharply higher for the week—up between 7.6 to 11.2 per cent over the past five sessions—and have risen up to 86 per cent in 2025 so far.

 

On the commodities side, MCX silver December futures traded 0.85 per cent higher at ₹1,47,568 per kg. Internationally, silver jumped 2.6 per cent to $50.13 an ounce, breaking above the psychologically significant $50 mark for the first time. 

 

“Gold and silver fell more than 2 per cent after briefly hitting all-time highs—$4,000 for gold and $50 for silver—as the dollar firmed and investors took profits following the Israel–Hamas ceasefire announcement,” said Manav Modi, analyst – precious metals research, Motilal Oswal Financial Services.

 

Tight physical supply is also shaping price action and ETF behaviour. Domestic premiums have spiked, adding volatility and widening the gap between ETF prices, silver futures, and exchange contracts. Citing scarce physical silver and elevated ETF premiums, Kotak Mutual Fund halted lump-sum and switch-in investments into its Silver ETF Fund of Fund on Thursday. FoF inflows ultimately channel into underlying silver ETFs. 

 

Mutual fund executives said creating fresh ETF units has been challenging because each unit must be backed by physical silver, which is harder to source quickly amid a global demand surge. Silver’s bulk and weight, far greater than gold for the same value, complicate logistics. “We need physical silver in our custody to create new units. Given the short supply internationally, we are facing challenges. Options are being explored, and this issue should soon get resolved,” said D P Singh, deputy managing director and joint CEO of SBI Mutual Fund.