Indian investments in silver exchange-traded products (ETPs) increased by 195 per cent in 2024 and made up 42 per cent of annual retail investments in the country, The Silver Institute’s “World Silver Survey 2025” said.
There has been a further 10 per cent additional rise in the inflows since the beginning of 2025 driven by positive local price expectations, said the New York-based institute, a non-profit international association that draws its membership from across the breadth of the silver industry.
The surge came despite the precious metal’s price increasing by 23 per cent in 2024. During the weekend, silver was quoted at $32.509 ounce, up 12.5 per cent since the beginning of 2025 and 15 per cent year-on-year.
77 million new accounts have been created
In a special note “The growing popularity of silver ETPs in India”, the survey said first launched in January 2022, these are trade on the National Stock Exchange and Bombay Stock Exchange, physically backed by LBMA-accredited silver stored in custodian vaults.
“Despite being a late entrant, silver ETPs have recently seen remarkable growth. Holdings surged by around 25 million ounces (783 tonnes) in 2024 to a record high of 38.6 million ounces (1,200 tonnes),” it said.
Retail trading accounts increased sharply over the past five years from 41 million in March 2020 to 185 million by the end of 2024. “Notably, in 2023 and 2024, 77 million accounts were added,” the survey said.
ETFs treble
The number of funds offering silver ETPs, launched much later after ones for gold began in 2007, has tripled in recent years, rising from four at the end of 2022 to 12 now. The growing interest in silver ETPs is due to several factors including in the metal’s inherent volatility, the convenience offered by EPTS and increasing financial awareness, the survey said.
“Finally, fueling the surge are inflows through Fund of Funds (FoFs). These are set up by mutual funds who, in turn, invest in their own ETPs,” it said.
Silver ETPs’ appeal have increased in the absence of efficient alternative investment options for the white metal. “Building on the gains seen in 2024, we expect a further rise of 70 million ounces (2,177t) for ETPs this year,” the institute said.
On the Multi Commodity Exchange of India, silver futures turnover was up by 5 per cent, while options trading more than doubled as high price volatility drove interest in flexible options contracts. The turnover on the India International Bullion Exchange surged to 36.2 million ounces (1,127t) in 2024, representing 16 per cent of total imports into the country.
Recycling down
Though some companies have introduced digital silver, its growth has been limited by a lack of regulatory oversight. “Thus, considering India’s appetite for silver investment, we expect ETPs to continue attracting inflows in the coming years, driving India’s share in the global ETP market beyond the current 4 per cent,” the institute said.
In 2024, India’s industrial consumption of silver was up 4 per cent, but the precious metal’s recycling was restrained, the survey said. Global jewellery fabrication increased by 3 per cent in 2024, primarily due to gains in India on account of the Centre’s decision to cut import duty and healthy rural economic recovery.
Demand for silverware dropped moderately in view of the high price in the gifting segment. However, coin and bar demand increased by 21 per cent – a nine-year high, despite global demand declining by 22 per cent to a five-year-low of 190.9 million ounces.
For 2025, the survey anticipates losses in both jewellery and silverware, as high silver prices weigh on Indian demand. In India, the 15 per cent likely drop be price-driven consumption losses, as re-stocking by the trade could be constrained by record high local prices.
Losses are also forecast for India in coin and bar demand as record high local prices induce profit-taking and outweigh new investment.
Published on April 19, 2025
