The market price of Silver ETFs listed on Indian stock exchanges has crashed. Prices of all silver ETFs, including Tata Silver Exchange Traded Fund, Aditya Birla Sun Life Silver ETF, Edelweiss Silver ETF, Mirae Asset Silver ETF, Nippon India Silver ETF, HDFC Silver ETF, ICICI Prudential Silver ETF, were down between 10% and 17% on Thursday.
However, in the international markets, Silver traded flat at $ 93.8, showing no signs of weakness. MCX Silver for 05MAR2026 contracts closed 2.86% down at Rs 3,09,380.
Fall in Market Price
Silver has moved 25% in less than 25 days of trading and such ‘adjustments’ are bound to happen in the Indian ETF market.
ETF market in India is supposedly not deep enough, leading to days when the units are either traded at a premium, sometimes at a discount. The sudden fall in the price and not the NAV of Silver ETFs could be largely because of the ‘premium’ that had been built into the price over the last few weeks, if not months.
The fall could also be attributed to the selling pressure that was witnessed after Trump’s Davos speech. On Thursday, silver prices hovered around $94 per ounce, remaining below record highs due to US President Donald Trump’s recent statements, which mitigated concerns about an escalating geopolitical and trade dispute regarding Greenland.
Trump dismissed the use of military force to acquire Greenland and reduced tariff threats towards European nations after establishing a framework for a future NATO deal, although the specifics of the agreement are still unclear.
The recent fall in market prices of silver ETFs should not be construed as a ‘discount’, which will happen only when the market price falls below NAV.
Nippon India’s Silver ETF is the largest in its category. The latest NAV (21 Jan 2026) is 298.6699. However, units of ETFs hardly trade at the NAVs. On 21 January, it closed at 310.68, and opened at Rs 299.60 on January 22, down by about 3.5%.
The price fell to a low of Rs 249.11 per unit and recovered to close at Rs 276.27, down by 11.55% from the previous day’s price.
There is still a differential of about 7% between the market price or the ETF price and the NAV of the ETF unit.
Silver price in India
In October, Silver ETF prices were trading at steep premiums over international benchmarks. Reports of supply shortages led to Silver ETFs being traded at a premium.
The premium of the Indian silver price over the global price surged from almost 0.5% in early September to nearly 5.7% (as of October 9 close), with intraday spikes of up to 12%.
Silver is an internationally traded commodity. Silver price in India is influenced not only by what’s happening globally but is also subject to import duty and taxes. Additionally, a domestic premium is added before the Silver ETF price is calculated.
Today, the silver price in India per kg is Rs 3,09,920, as against yesterday’s price of Rs 3,16,660.