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Conversations on X about Silver Exchange Traded Funds (ETFs) have spiked as the funds trade at premiums of 8% to 18% above their net asset value (NAV). Financial planners are warning investors to hold off on buying until prices stabilise.

The premiums mean buyers are paying well above the actual value of the silver the ETFs hold. The reason is a shortage of physical silver bars, which has disrupted the usual mechanism that keeps ETF prices in line with the metal they track.

Under normal conditions, large investors perform arbitrage: they buy silver, sell ETF units, and profit from the difference, bringing prices back in line with the NAV. Currently, this process is failing. Market makers cannot obta

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