Silver is on a tear. It has breached the $50-mark for the first time on October 9, spurred by high demand. Domestic prices hit Rs 1.63 lakh for a kg, drawing a wave of new investors.

Those who stayed away from the white metal are now rushing into silver exchange traded funds (ETFs ), even if it means paying a hefty premium over indicative net asset values (NAVs).

"On the NSE, leading ETFs like SBI Silver, HDFC Silver, and Axis Silver are up 9–13 percent, trading well above their net asset values. Ironically, while ETFs have been soaring, MCX silver December futures slipped 0.6 percent, indicating that sentiment-driven retail enthusiasm, not fundamentals, is fuelling the chase," Apurva Sheth, head of market perspectives & research at SAMCO Securities said.

This is a textbook case of F

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