The ‘premium’ seems to be back in the Silver ETFs listed on the Indian stock exchanges. After crashing by up to 17% on Thursday, the market price of Silver ETFs listed on the Indian stock exchanges has bounced back significantly.
Prices of all silver ETFs, including Tata Silver Exchange Traded Fund, Aditya Birla Sun Life Silver ETF, Edelweiss Silver ETF, Mirae Asset Silver ETF, 360 ONE Silver ETF, Nippon India Silver ETF, HDFC Silver ETF, ICICI Prudential Silver ETF, were up between 5% and 8% ( intra-day) on Friday.
“The sharp surge in silver ETFs is a clear reflection of how aggressively investors are repositioning toward safe-haven assets amid heightened global uncertainty. ETF demand suggests investor conviction in precious metals as a strategic hedge remains robust,” says Justin Khoo, Senior Market Analyst – APAC, VT Market
360 ONE Mutual Fund – 360 ONE Silver ETF is the highest gainer, up by 7.77%, while India’s largest Silver ETF, Nippon India Silver ETF, is up by 6.5%. These gains do not reflect the ‘real’ picture in ETFs as they are subject to a ‘premium’ built into the market price. Read on to understand why.
Thursday’s Crash
In the international markets, Silver in the spot market did not show any weakness on Thursday, and even on Friday, trades close to $100. However, on Thursday, Silver ETFs listed on the Indian stock exchanges crashed.
In the case of ETF, there is the NAV or the iNAV and then there is the market price of the ETF. The trading happens on the ETF’s market price and not the NAV.
The sudden fall in the price and not the NAV of Silver ETFs happens because of the ‘premium’ that had been built into the price over the last few weeks, if not months. On Thursday, that ‘premium’ vanished due to certain reasons.
Friday’s Up Move
That premium seems to be back now. On Friday, Silver ETFs are trading higher by around 8%. “The recent ‘premium-to-iNAV’ episode serves as a vital reminder: during high-demand phases, supply constraints and tariff threats can temporarily disconnect ETF prices from their underlying value. To mitigate this, investors should avoid chasing vertical moves and instead adopt a staggered, systematic entry to benefit from price averaging during inevitable consolidations,” says Tapan Patel, Fund Manager-Commodities at Tata Asset Management.
Let us take India’s largest Silver ETF, Nippon India Silver ETF, to understand better. The latest NAV (22 Jan 2026) is 279.6775, while on 23 January, the units trade at around Rs 297. This means there is still a premium of about 6%.
The ETF market in India is supposedly not deep enough, leading to days when the units are either traded at a premium or sometimes at a discount. There is still a differential of about 6-7% between the market price or the ETF price and the NAV of the ETF unit. What it means is that this divergence is not in favour of short-term investors. Only long-term investors should consider buying ETFs if they need to.