Indian silver ETFs surge as global yields ease, bullion demand rises

Silver-focused ETFs across major Indian asset managers advanced sharply on Tuesday, with funds from Tata, Nippon, HDFC, SBI, Axis, DSP and Groww each gaining over 4 per cent during intraday trading. The synchronized strength across multiple silver ETF providers pointed to underlying demand for the precious metal rather than fund-specific factors.

The rally was primarily driven by softer US Treasury yields, which have declined from recent peaks. Lower yields reduce the opportunity cost of holding non-interest-bearing assets like silver, making precious metals more attractive to global investors. The easing of US monetary policy expectations has bolstered sentiment across commodity markets.

Silver, traditionally sought as an inflation hedge and industrial input, has benefited from the confluence of slower yield growth and persistent geopolitical uncertainties. Indian investors have increasingly turned to silver ETFs as a convenient mechanism for gaining exposure to the precious metal without the complexities of physical storage and purity verification.

Analysts noted that the strength in silver ETFs reflects broader momentum in precious metals markets globally. With gold also posting gains alongside silver, the synchronized movement suggests macroeconomic factors rather than metal-specific supply-demand dynamics are currently driving valuations. Investors are monitoring global economic indicators closely for further directional cues.