Silver prices in India climbed past Rs 3.22 lakh per kilogram on the Multi Commodity Exchange on Tuesday, fuelled by geopolitical tensions, tight physical supply and strong investor demand.
Market experts say a key trend in the recent rally has been the rising interest of Gen Z and retail investors in silver exchange-traded funds (ETFs) over the past six months. Seeking diversification and liquidity amid volatility in traditional markets, younger investors are increasingly opting for silver ETFs instead of physical silver. This has boosted assets under management and widened silver’s appeal among first-time investors, particularly in Gujarat.
FOMO boosts late buying
Parth Parekh, Investor Relationship Head at Prudent Corporate Advisory Services, said fear of missing out (FOMO) played a major role in driving demand in the second half of 2025 as silver prices surged sharply.
“Many investors who missed the early phase of the rally entered later and still made good returns. Those unwilling to buy physical silver turned to silver ETFs, leading to record inflows last year,” he said.
Easy access and liquidity have made silver ETFs especially popular among Gen Z and retail investors in their 40s, pushing up demand across Gujarat and other regions, experts noted.
SIP preferred over lump sum
Bhavik Patel, senior research analyst at Tradebulls Securities, advised young investors to view silver ETF investments from a long-term perspective rather than chasing short-term gains.
“Any correction in silver prices should be seen as a buying opportunity. Investing through a SIP is better than a lump-sum investment, as it allows investors to average costs by buying at lower levels whenever prices dip,” Patel said.
Strong industrial demand from renewable energy, electronics and electric vehicle sectors, along with safe-haven buying and rising ETF participation, continues to support bullish sentiment in silver, analysts added.
Rs 54,831 crore inflow in 2025
Hitesh Somani, MD of Aapka Investments and a SEBI-registered research analyst, said silver ETF inflows jumped sharply from Rs 8,474 crore in 2024 to Rs 54,831 crore in 2025.
“Silver hit a fresh lifetime high of over Rs 3.22 lakh per kg on MCX amid US-Greenland tensions. It has delivered nearly 300% returns in just three months and could rise to Rs 3.5–4 lakh if current conditions persist,” he said.
However, experts cautioned investors to remain mindful of volatility and risks associated with commodity investments despite the strong rally.