Silver ETFs post massive gains in 2025. What should investors expect in 2026?
1/7
Outstanding performer
The year 2025 will be remembered for two standout assets: gold and silver. Gold and silver posted some of their strongest returns in over four decades. In 2025, silver jumped about 138%, emerging as the top performer across major asset classes, while gold rose 74.5%, its best annual gain in decades, as reported by ETWealth.
2/7
ETFs gained attention
Exchange-traded fund (ETF) trading offered a clear window into investor demand. During several phases in 2025, gold and silver ETFs traded at noticeable premiums to their indicative net asset value (iNAV), though these later corrected as supply caught up.
3/7
Investor exposure
Vikram Dhawan, Head of Commodities and Fund Manager at Nippon India Mutual Fund, said that Indian investors have steadily increased exposure to gold and silver ETFs, adopting a strategic approach. The liquidity, transparency and regulated structure of ETFs made them attractive as prices climbed.
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4/7
What was fueling the rally?
According to Kirtan Shah, CEO, Truvanta Wealth, “Silver is not moving up because something is broken. Silver is moving up because of pure demand.” Shah points to rapidly expanding industrial use cases like electric vehicles, solar power, semiconductors, telecom and artificial intelligence.
5/7
More volatile
Shah believes that some large manufacturers are now securing long-term access to silver through direct agreements with miners, rather than relying solely on spot markets, and this suggests that silver demand may no longer be just cyclical and could be becoming more structural. This is also why silver has become more volatile than gold.
6/7
Rally and fall
When optimism around global manufacturing and energy transition strengthened, silver rallied sharply. When growth concerns emerge, it corrects just as quickly. Treating silver as merely a cheaper version of gold clearly did not work in 2025.
7/7
Way ahead
Looking ahead, experts urge caution around some assumptions being priced in. Naveen Mathur, Director– Commodities & Currencies at Anand Rathi Share and Stock Brokers, believes global inflation may be overestimated. A sharper-than-expected rise in inflation in 2026 could limit rate cuts, strengthen the US dollar and introduce volatility in precious metals.
Vikram Dhawan, Head of Commodities and Fund Manager at Nippon India Mutual Fund, said that while gold and silver work well over the long term, prices can swing sharply in the short run, especially in silver.
Vikram Dhawan, Head of Commodities and Fund Manager at Nippon India Mutual Fund, said that while gold and silver work well over the long term, prices can swing sharply in the short run, especially in silver.