Silver ETFs jump 31% in 2025 as metal hits all-time high. Should you bet on this rally?

Silver ETFs have offered an average return of 31% in the current calendar year so far, and the precious metal has reached an all-time high level on Wednesday. There were around 21 funds in the category which delivered up to 32.84% returns in the same period.

UTI Silver ETF offered the highest return of 32.84% in 2025 so far, followed by Aditya Birla SL Silver ETF and Axis Silver ETF, which gained 31.92% and 31.87% respectively in the same period.



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HDFC Silver ETF and Kotak Silver ETF delivered 31.78% each in the mentioned period. Tata Silver ETF gave the lowest return of 30.54% in 2025 so far. In other words, all funds delivered more than 30% return in 2025 so far.

Post this rally in Silver, an expert recommends betting on this rally through multi-asset allocation funds wherein the fund manager may take exposure at his discretion.

“Should be considered but as Multi Asset Allocation wherein the fund manager may allocate a higher percentage allocation to commodities (Gold, Silver, etc) depending on the view,” Rajesh Minocha, a Certified Financial Planner (CFP), Founder of Financial Radiance, shared with ETMutualFunds.

According to a report by ETMarkets, Silver September futures contracts hit a new all-time high of Rs 1,16,275/kg, having surged by Rs 620 or 0.53% and Gold and silver extended their gains amid the approaching U.S. trade tariff deadline. “The U.S. President already warned of imposing higher trade tariffs on U.S. trade partners if a trade deal is not finalized before August 1,” the report added.

On Wednesday, according to data available on NSE, silver ETFs rallied up to 1.39% with the UTI Silver ETF witnessing the highest surge. Mirae Asset Silver ETF surged by 1.37% and DSP Silver ETF jumped by 1.05%.

According to another expert, market concerns grew over the potential for these levies, scheduled to take effect on August 1, to spill into broader trade relations, even though silver remains exempt under the current US-Mexico-Canada Agreement.

“Earlier gains in silver had been fuelled by tightening physical supply and soaring lease rates in London, where a surge in ETF holdings, up by around 2,570 tonnes since February, has reduced the pool of available metal. The one-month annualized lease rate exceeded 6%, a stark deviation from the near-zero norm, signaling deepening physical market strain,” Riya Singh – Research Analyst, Commodities and Currency, Emkay Global Financial Services

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The counterpart - gold ETFs have offered an average return of 29.36% in the current calendar year so far and delivered up to 29.81% return in the same period.

Singh believes that despite the retreat, silver is still up 32% year-to-date, outperforming gold’s 27% rise, and the gold-silver ratio has dropped to 86 from its 10-year average of 80, indicating silver remains relatively undervalued.