October 23, 2025

Silver ETFs, which recently dazzled investors with a spectacular price surge pushing domestic silver to record peaks, are now losing their shine fast. After a sparkling rally, silver prices have slipped nearly 19% since October 15, as the extra premiums investors paid over global prices vanished into thin air. The cooling comes amid a drop in global silver prices by 7.1%, shaken by a stronger US dollar and cautious moods in the commodity market. This means when India’s markets open after the Diwali break, investors could see nickel-and-dime sell-offs again. This dip follows an electric squeeze in London’s silver market, where prices zoomed past records set in 1980 by the Hunt brothers' legendary market cornering. Spot silver prices suddenly surged ahead of New York futures, prompting physical silver shipments to London to ease market tension. But like a firecracker losing spark, the rally slowed as technical alarms rang and a tough greenback pulled prices downward. On the MCX, silver slipped by ₹327 (0.22%) to ₹1,50,000 per kg during the special Muhurat trading session. Markets stayed shut until Wednesday morning, and when trading resumes Thursday evening, prices might take another dip. Signaling a mood shift, Aditya Birla Sun Life Silver ETF Fund of Fund has restarted fresh subscriptions from October 23, after pausing them for weeks. This move comes as ETFs switch from overpriced premiums to discounts compared to world benchmarks, showing markets are calming after wild speculative highs. The slump follows two days of sharp falls in both silver and gold, triggered by US President Donald Trump's hint that talks with China might not happen soon, crushing hopes for easing trade tensions. Before this, precious metals had enjoyed a fantastic run fueled by hopes for rate cuts, a falling dollar, lower bond yields, central bank buying, and big demand for safe havens. Still, experts urge not to lose sight of silver's strong foundations. Motilal Oswal expects silver prices to hover between $50 and $55 per ounce soon, but to climb dazzlingly to $75 by 2026 and $77 by 2027 on COMEX. That’s around ₹2.4 lakh per kg in India, assuming a USD-INR rate of 90. Bank of America stays bullish too, raising its silver price target to $65 per ounce despite forecasting an 11% drop in demand next year, citing ongoing supply shortages. Motilal Oswal’s long-term view hints this dip is just a breather in a steady upward climb. They predict the global supply shortfall to continue for the fifth year in 2025, fuelled by rising demand from green technologies like solar power and electric vehicles. This steady demand squeeze could keep silver prices strong, unlike the wild spikes seen in 1980 and 2011. So, while the sparkle faded briefly, the silver story might still have plenty of shine left for savvy investors.

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Tags: Silver etfs, Silver prices, Commodity market, Global silver, Aditya birla sun life, Market correction,