Silver prices hit a historic milestone on October 9, breaching the $50 per ounce mark for the first time since 1980, triggering a wave of retail interest and frenzied trading in silver exchange-traded funds (ETFs). The rally, driven by a 74% year-to-date surge, has pushed ETFs to trade at hefty premiums — raising concerns that investors are paying far more than the actual value of silver. Advertisement

According to market data, Nippon India’s Silver ETF, the largest in India, closed at Rs 156, nearly 5.5% higher than its indicative net asset value (iNAV) of Rs 148.3. Other ETFs from HDFC MF, UTI MF, and Tata MF also traded at double-digit premiums, reflecting a demand-supply imbalance.

Fund managers attribute this distortion to limited physical supply — each ETF unit must be backed by a

See Full Page