Silver is currently trading around $48.80 per ounce after a brief pullback driven by profit booking and the easing of US–China trade restrictions on critical minerals. Emkay notes that while an earlier Federal Reserve rate cut had lent support to precious metals, uncertainty over further policy easing has added to recent volatility.
Despite this, Emkay highlights that Silver Exchange Traded Funds (ETFs) and Silver Fund of Funds (FoFs) have continued to outperform physical silver over the past three years.
As of October 31, 2025, ICICI Prudential and Nippon India Silver ETFs posted over 50% one-year returns, compared with roughly 49% for physical silver.
Three- and six-month returns ranged between 34% and 56%, reflecting the strength of the rally. Nippon India Silver ETF leads the category with an AUM of ₹15,284 crore, followed by ICICI Prudential at ₹9,481 crore.
Silver FoFs have mirrored this performance trend, delivering 49–50% one-year gains, with the ICICI Prudential Silver ETF FoF managing ₹3,232 crore in assets.
Emkay attributes the slight performance difference between ETFs and FoFs to fund-level expenses.
The firm remains optimistic about silver’s broader fundamentals. It points to rising industrial demand from sectors such as renewable energy and electronics, along with constrained supply, as factors that continue to support long-term price stability.
Given silver’s higher volatility, Emkay recommends that investors treat fresh exposure as tactical allocations through ETFs or FoFs over a six- to twelve-month horizon, with defined exit targets aligned to expected price movements.