Due to a significant increase in silver prices and increased volatility, India’s silver exchange-traded funds (ETFs) saw their first net outflow in 27 months in February.
Silver ETFs experienced a net outflow of Rs 826.3 crore during the month due to gross inflows of Rs 4628 crore and redemptions of Rs 5455 crore. Compared to net inflows of Rs 9463.40 crore in January, this represented the first net outflow since November 2023.
In recent years, investors in India have been actively participating in silver ETFs. Compared to Rs 8568 crore in 2024, Rs 23472 crore was invested in silver ETFs in 2025.
Over the last few months, silver prices have skyrocketed. After rising by 19% in January, silver prices increased by 10% in February. Silver has increased by almost 20% thus far in 2026. Previously, prices increased by 16% in November and 27% in December of 2025. Silver increased by almost 148 percent for the entire year 2025, following a 22 percent increase in 2024.
Price movement in CY2026, according to experts, suggests that silver prices may go through a phase of consolidation before rising in the medium run. In CY2025, silver prices increased too quickly, causing many investors to book profits. Additionally, some astute investors might have just moved their holdings from overheated precious metals to reasonably priced stocks.
In addition, the Securities and Exchange Board of India (SEBI), a market regulator, changed the framework for valuing real gold and silver held by mutual fund schemes in late February. Instead of using worldwide benchmarks, SEBI switched to domestic market-linked pricing.
The regulator stated in a circular that mutual funds will use polling spot prices from reputable domestic stock exchanges to value actual gold and silver. The London Bullion Market Association (LBMA), which now sets prices after accounting for currencies, customs, and local expenses, will no longer be used.
