Silver ETF outperformed gold, gave up to 32.49% return in one year, is it right to invest in silver now?

New Delhi: In the last one year, silver exchange-traded funds (ETFs) have given a tough competition to gold ETFs. According to the report of ICRA Analytics, silver ETFs gave a return of up to 32.49% in one year, while the return of gold ETFs was 28.07%.

The popularity of silver ETFs has increased a lot this year. The assets under management under silver ETFs have reached ₹12,331 crores till October 2024, up from ₹2,844 crores last year. The number of investors has also increased by 215% to 4.47 lakhs.

Why did the demand for silver ETFs increase?

A major reason for the increasing demand for silver ETFs is it's easy-to-buy and sell form. While physical silver has additional expenses like storage and GST, investors can trade in ETFs without any hassle. Apart from this, these ETFs are listed on the exchanges, which makes them very easy to trade.

Silver vs Gold ETFs, difference in returns

Silver ETFs have outperformed Gold ETFs across all periods.

Time Period	Silver ETFs	Gold ETFs
1 month	7.57%	5.32%
3 Months	16.02%	14.29%
6 Months	20.25%	10.29%
1 year	32.49%	28.07%

Top Silver ETF Performers:

Here are some of the top ETFs that are performing well at the moment:

Aditya Birla Sun Life Silver ETF – 32.61% return in 1 year
Axis Silver ETF – 31.43% return in 1 year
DSP Silver ETF – 32.57% return in 1 year
HDFC Silver ETF – 33% return in 1 year

According to experts, the demand for silver may increase further in the coming times, especially given its increasing use in electronics and green technologies. The reduction in interest rates by the US Federal Reserve may also lead to an increase in silver prices.

Ashwini Kumar, Senior Vice President, ICRA Analytics, says, “Silver prices are expected to rise, as the Federal Reserve may cut interest rates, which will boost silver prices. Also, the demand for silver will also increase in the field of electronics and green technology.”

Should you invest in silver ETFs now?

If you are looking to diversify your investment portfolio and protect yourself against inflation, silver ETFs can be a good option. However, it is important to assess your financial position and risk appetite before making any investment.