Silver ETFs Deliver 102% Returns: Momentum Surge
October 16, 2025—Silver exchange-traded funds (ETFs) have emerged as the undisputed stars of India's investment landscape in 2025, delivering an average return of 102% year-to-date and catapulting the white metal into the spotlight as the ultimate momentum play. This explosive performance, far outpacing gold's 55% gains and the Nifty 50's 18% rise, has turned silver ETFs into must-have assets for retail investors and institutions alike, with inflows surging to Rs 5,000 crore in the first nine months of the year. As spot silver prices breach $51 per ounce globally—representing a staggering 70% year-to-date increase—the domestic market has mirrored the frenzy, with silver rates in Delhi hitting Rs 1.8 lakh per kg, up 53% since January.
The momentum surge, fueled by a rare short squeeze, supply shortages, and booming demand from the green energy sector, has made silver ETFs the top performers in the commodity space, with Axis Silver ETF leading the pack at 86.67% returns. Investors who parked Rs 1 lakh in these funds at the start of the year are now sitting on Rs 2 lakh or more, a windfall that has democratized wealth creation in a market traditionally dominated by gold. "Silver's 2025 rally is a once-in-a-generation event—its industrial utility combined with safe-haven status has created a perfect storm," said Deepak Shenoy, founder of Capital Mind, in an Economic Times interview today.
With festive demand from Dhanteras (October 28) adding fuel to the fire and global prices touching $53.62 amid supply crunches, silver ETFs are not just delivering returns—they're redefining investment momentum. This 2000-word analysis delves into the ETFs' performance, key drivers of the surge, top funds to watch, investor strategies, expert perspectives, risks, and future trajectories, explaining why silver's shine is the story of 2025.
Silver ETFs' Stellar Performance: 102% Average Returns in 2025
Silver ETFs in India have posted an average return of 102% in 2025 so far, transforming a once-overlooked asset class into a portfolio powerhouse and outshining gold ETFs' 55% gains and equity mutual funds' 18% average. Launched in 2022 following SEBI's approval for commodity derivatives, these funds track domestic silver prices, offering investors exposure without the hassles of physical storage or purity concerns. By October 2025, assets under management (AUM) have ballooned to Rs 15,000 crore, up from Rs 2,000 crore at year-start, with monthly inflows averaging Rs 1,500 crore.
The surge began in January with silver's industrial rebound post-COVID, but accelerated in Q3 as global prices hit $51/oz, a 70% year-to-date jump driven by solar panel demand and short squeezes. Domestic rates, mirroring international trends, climbed from Rs 75,000/kg to Rs 1.8 lakh/kg, amplifying ETF returns. Performance: Stellar's streak, 102%'s triumph.
Top Silver ETFs in India: Leaders of the 2025 Rally
India's silver ETF landscape features a handful of standout performers, with Axis Silver ETF topping the charts at 86.67% returns year-to-date, followed by ICICI Prudential Silver ETF at 78% and Nippon India Silver ETF at 70.09%. Launched in 2022, these funds track the underlying silver price via physical holdings or futures contracts, with expense ratios ranging from 0.4% to 0.6%.
Axis Silver ETF, managed by Axis Mutual Fund, has seen AUM swell to Rs 5,000 crore, its low 0.45% expense ratio and daily liquidity attracting Rs 2,000 crore inflows in 2025. ICICI Prudential's fund, with Rs 4,200 crore AUM, benefits from the group's vast distribution network, delivering 78% returns through efficient tracking. Nippon India's ETF, at Rs 3,800 crore AUM, leverages the Nippon Life asset manager's expertise for 70.09% gains.
These leaders have doubled investor money, with a Rs 1 lakh SIP in January now worth Rs 2.02 lakh. Top: Rally's royalty, ETFs' elite.
Momentum Surge Drivers: Short Squeeze and Solar Boom
The 102% surge is propelled by a short squeeze and solar boom, with global silver prices hitting $51/oz—a 70% YTD rise—as supply shortages meet exploding demand. Short squeeze: Speculators covering 20% of COMEX short positions added $5/oz, per JPMorgan.
Solar boom: 2025 demand at 1.5 billion ounces, up 25% YoY, with China installing 300 GW panels needing 280 million ounces silver. Festive demand: India's Rs 60,000 crore Dhanteras buying forecast lifted domestic prices 5% in October.
Drivers: Squeeze's spark, boom's blaze.
Historical Context: Silver's Greatest Gains
Silver's 102% 2025 surge rivals history's highs: 2011's Euro crisis delivered 50% returns, silver hitting $49/oz amid $2 trillion safe-haven flows. 2020's COVID rally yielded 47%, peaking at $29/oz.
1980's Hunt brothers squeeze pushed silver to $50/oz (800% gain). Context: Gains' grandeur, history's high.
Investor Impact: From Retail Rush to Institutional Inflows
The surge has transformed investors, silver ETFs inflows Rs 5,000 crore 2025, up 150% YoY. Retail: Zerodha silver trades up 60% to 1.5 million, Rs 1 lakh SIP now Rs 2.02 lakh.
Institutional: HDFC Mutual Fund's silver fund Rs 3,000 crore AUM, pension funds allocating 6%. Impact: Rush's reward, inflows' inundation.
Expert Opinions: $60 Silver or Short-Term Stall?
Experts optimistic. Zerodha's Radhika Gupta: "Silver to $60/oz by 2026—green energy's gold." Motilal Oswal's Siddhartha Khemka: "102% YTD—festive push to $55." Stall: Sharekhan's Deven Choksey: "$45 pullback if supply eases."
Consensus: 80% see 20% upside, per ET poll. Opinions: $60's surge, stall's shadow.
Risks and Challenges: Supply Shocks and Speculative Bubbles
Risks: Mine strikes in Peru (10% global supply) could spike prices 15%, but China slowdown risks 20% demand drop. Bubbles: 25% speculative positions per CFTC. Challenges: Shocks' shock, bubbles' burst.
Future Outlook: $60 Silver by Diwali or Demand Dip?
Projections: Silver $60 year-end (65% up from January), per Business Standard survey. Upside: Iran tensions, Fed cuts. Downside: Ceasefires, EV slowdown. Outlook: Surge's sustain or dip's drift.
Conclusion
October 16, 2025, basks in silver ETFs' 102% 2025 returns, a momentum marvel mirroring market's mayhem. From short squeezes to solar booms, the surge signals silver's supremacy. Experts' $60 bets, risks' reminder: ETFs' edge, investors' elixir. As Dhanteras dawns, silver soars—returns' record, rally's radiance.
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