Gold ETF inflows fall 22%, but silver jumps 57% in October. Is it time to rebalance your portfolio?

Inflows into gold exchange-traded funds (ETFs) declined 22% in October, while silver ETFs witnessed a 57% jump, according to data released by the Association of Mutual Funds in India (AMFI). The contrasting trends show that investors are showing less interest in gold ETFs and greater interest in silver ETFs, even though both metals remain part of investment portfolios.

The shift raises questions about whether investors are increasingly favouring silver over gold, whether the trend is driven by short-term price movements, and how investors should position their portfolios amid changing market conditions.

Vishal Dhawan, Founder and CEO of Plan Ahead Wealth Advisors shared with ETMutualFunds that gold had already experienced a strong run-up to record price levels, making many retail investors hesitant to commit fresh money. Silver, on the other hand, had lagged gold for some time and was perceived as relatively affordable, prompting investors to look at it as an opportunity to catch up.


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He said a substantial part of the jump in silver ETF inflows could be attributed to short-term momentum and fear of missing out. Since silver has a smaller overall market than gold, its prices tend to move faster when buying picks up. As silver started gaining, investors may have rushed in to participate in the rally.

However, Dhawan does not see this as investors fundamentally moving away from gold. Gold continues to be the preferred choice for safety, wealth preservation and protection against economic uncertainty. The rise in silver inflows is more likely to reflect tactical and opportunistic buying than a permanent change in investor preference.

Shivam Pathak, CFP and Founder of Asset Elixir told ETMutualFunds that the higher inflows into silver ETFs could partly be driven by a sharper correction in silver prices, which may have attracted investors looking for opportunities at lower levels. Gold, meanwhile, continues to draw investors seeking stability and portfolio diversification.

Pathak views the trend as tactical buying in silver rather than a shift in long-term investor preference.

According to the AMFI data, gold ETFs received an inflow of Rs 3,474 crore in October compared to Rs 4,450 crore in September. On the other hand, silver ETFs received an inflow of Rs 3,092 crore in October against an inflow of Rs 1,974 crore in September.

Should investors shift from gold to silver ETFs?

Pathak said some investors may be booking profits in gold and exploring silver after the strong rally in precious metals. However, silver is considerably more volatile than gold and can witness sharper corrections.

He advised investors against increasing their silver exposure purely because of recent price movements or higher ETF inflows. Any additional allocation should be aligned with their risk appetite and investment horizon.

Dhawan said elevated gold prices may have prompted investors to lock in some profits, with a portion of the money potentially moving into silver, which appeared relatively attractive. However, he cautioned against making aggressive investments in silver.

“More than half of silver demand comes from industrial uses such as electronics and clean energy. This makes the metal sensitive to changes in manufacturing activity. If industrial demand weakens, silver prices can fall sharply, making higher ETF inflows an insufficient reason to invest.”

Investors looking to add silver to their portfolios should consider doing so gradually rather than investing a lump sum, Dhawan said. Staggering purchases can help reduce the impact of sharp price movements. Silver can provide an additional growth opportunity in a portfolio, but it should not replace the stability that gold offers.

How gold and silver ETFs performed?

In October, gold ETFs on an average lost 5.30%. There were 26 gold ETFs in the said time period, of which Zerodha CASE Gold ETF lost the most of around 5.39%. The Wealth Company Gold ETF lost the lowest of around 5.23%.

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Nippon India ETF Gold BeES, the largest gold ETF based on the assets under management, lost 5.34% in October.

Silver ETFs on an average lost 17.30% in October. Zerodha CASE Silver ETF lost the most of around 17.66% in the said month. Bandhan Silver ETF lost the lowest of 17%.

Gold or silver ETFs: Which metal to choose?

Gold and silver serve different purposes in an investment portfolio. While gold is generally used for wealth preservation and diversification, silver has an additional industrial-demand component that can influence its price movements. Investors need to consider these differences before deciding whether to invest in one metal or both.

Dhawan said silver currently has room for further gains, supported by industrial demand. Gold, which is already at elevated levels, offers stability and wealth protection rather than the possibility of sharp near-term growth.

He said holding both metals can make sense because they play different roles. Gold can act as portfolio insurance during geopolitical tensions and stock market declines, while silver offers exposure to industrial and manufacturing trends.

Dhawan suggested keeping total precious metal exposure at around 10% of the overall portfolio. This can provide a cushion during market downturns without compromising the portfolio's long-term growth potential.

Pathak also prefers holding both metals rather than choosing one over the other. He said gold can act as a portfolio diversifier and provide stability during uncertain market conditions, while silver offers additional growth potential because of its industrial demand.

Investors can consider allocating around 5-10% of their overall portfolio to precious metals, with a larger share in gold and a smaller allocation to silver, Pathak said.

Inflow trend in gold and silver ETFs

Gold ETFs received a total inflow of Rs 49,399 crore in the first 10 months of calendar year 2026 which is higher than the total inflows in calendar year 2025. CY2025 received a total inflow of Rs 42,961 crore.

Nehal Meshram, Senior Analyst, Morningstar Investment Research India said that the sustained strength in flows highlights investors' increasing willingness to incorporate gold as a long-term portfolio allocation, particularly within diversified and multi-asset portfolios.

Silver ETFs received a total inflow of Rs 17,601 crore in CY2026 so far whereas in CY2025 these ETFs received an inflow of Rs 23,472 crore.

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Way ahead for gold and silver

Pathak said gold prices will continue to be influenced by global interest rates, movements in the US dollar, central bank buying and geopolitical developments. Silver will have the additional influence of industrial demand, particularly from sectors such as solar energy, electronics and manufacturing.

Dhawan identified a possible slowdown in global industrial manufacturing as one of the biggest risks for silver over the next year. A decline in factory output in major economies could weaken commercial demand and put pressure on silver prices.

For gold, the key risk is interest rates remaining higher for longer, which could reduce the appeal of an asset that does not generate regular income.

Dhawan expects the near-term outlook for gold ETFs to remain stable and supportive, although gains could moderate. Continued central bank buying and geopolitical tensions could support gold prices, making the metal a relatively steady anchor for conservative portfolios.

Silver ETFs, in contrast, could see a more volatile trajectory, with sharper movements in both directions. If industrial consumption remains healthy, silver could outperform gold during certain market phases. However, investors should be prepared for periodic corrections and avoid treating silver as a predictable investment.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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