Silver ETF Inflows Rise as Investors Hedge Equity Volatility

In September, Indian silver-backed ETFs attracted net inflows of around ₹53.4 billion, setting a new monthly record. The inflows coincided with a spike in domestic silver premiums and retail buying ahead of festivals. However, in the days following the surge, ETF subscription activity has slowed due to supply constraints and premium hikes. Analysts say silver’s leveraged nature is appealing as a hedge for equity market volatility, but they caution that liquidity risks and sharp moves remain elevated given the metal’s smaller market size.