Silver and gold exchange-traded funds (ETFs) saw a strong rise on Friday, climbing as much as 17 per cent during the day’s trade. The sharp jump comes after recent ups and downs in prices, showing that precious metal ETFs are still very volatile.
Market experts advised investors to invest carefully and avoid putting all their money at once. They suggested using a staggered or systematic investment method so that investors can benefit from price averaging when prices fall or consolidate.
Although many fund managers and commodity analysts remain positive about silver’s future, some experts pointed to the gold-silver ratio and recommended keeping a larger share of investments in gold or gold ETFs for better stability.
By 11:47 am, Tata Silver Exchange Traded Fund was trading 8.39 per cent higher at ₹30.49 compared to its previous close of ₹28.12. Its indicative Net Asset Value (i-NAV), which shows the real-time fair value of the ETF, stood at ₹31.95. Earlier in the day, it had jumped 17.35 per cent to touch a high of ₹33.
ICICI Prudential Silver ETF also gained 8.35 per cent to trade at ₹312.21, slightly above its i-NAV of ₹310.91. Similarly, Aditya Birla Sun Life Silver ETF rose 8.44 per cent to ₹311, trading at a premium compared to its i-NAV of ₹291.57.
Other silver ETFs, including Nippon India Silver ETF, Zerodha Silver ETF, HDFC Silver ETF and SBI Silver ETF, also gained between 7 and 9 per cent. These gains came a day after the funds had seen a sharp fall, highlighting the ongoing price swings in the precious metals market.