The Short Version
Silver ETFs in India went through one of the sharpest rallies and crashes in their short history in early 2026. Using Nippon India Silver ETF, the largest, as the yardstick (AMFI NAV data):
- The run-up: ₹132.73 on 26 September 2025, ₹218.32 on 31 December 2025, then ₹359.32 on 29 January 2026: up about 65% in January alone.
- The crash: down to ₹199.75 by 23 March 2026, a fall of about 44% from the peak.
- Now: ₹211.37 on 28 September 2026, still about 41% below the peak and about 3% down for the calendar year, but up about 59% over twelve months.
What Happened: The Sharp Decline, Step by Step
| Date | Nippon India Silver ETF NAV | What it means |
|---|---|---|
| 31 Dec 2025 | ₹218.32 | Already after a big 2025 rally |
| 29 Jan 2026 | ₹359.32 | All-time high, +65% in a month |
| 17 Feb 2026 | ₹222.59 | Most of January's gain gone |
| 23 Mar 2026 | ₹199.75 | The low: −44% from the peak |
| 13 May 2026 | ₹272.27 | A partial bounce |
| 25 Jun 2026 | ₹207.66 | A second leg down, about −17% in June |
| 28 Sep 2026 | ₹211.37 | Still about 41% below the peak |
Internationally, silver touched a record of about US$121.6 an ounce on 29 January 2026 and then fell roughly a third within about a day and a half, after the CME raised margin requirements on silver futures. Indian silver ETFs fell again sharply on 4 March, losing about 8% in a single session in a broad bullion sell-off.
Why Silver Fell So Hard
1. The rally was parabolic
A 65% rise in one month is not a normal move for any asset. Prices that go vertical on momentum and leverage tend to fall just as fast once buying pressure fades. Most of January's gain disappeared within three weeks.
2. Margin hikes forced leveraged sellers out
When an exchange raises margin requirements, traders holding futures on borrowed money must put up more cash or sell. At the peak, many sold at once, and that selling fed on itself. This is a trading-market effect, not a change in silver's long-term uses.
3. Silver is a high-volatility metal
Silver's market is much smaller than gold's and more driven by speculative money, so it swings harder in both directions. Over the same period Gold BeES fell about 22% from its January peak to its March low, half silver's drop, and is still up about 10% for 2026.
The ETFs themselves did their job: they followed the silver price down, as they are designed to. The losses came from the metal, not from the funds.
What Indian Investors Should Do Now
If you already hold silver ETFs
Selling now locks in the loss without changing your future risk. The better question is whether silver was ever sized sensibly. For most portfolios that means 1–3% in silver and 5–10% in precious metals overall. If you are within that range, there is little reason to sell. If you bought heavily during the January rally, treat this as a lesson in position sizing rather than a reason to double down.
If you are thinking of buying
- Buy gradually, for example through a monthly SIP over 6–12 months, rather than in one lump sum. Silver can stay weak for long periods.
- Keep silver to about 1–3% of your portfolio (our rule of thumb).
- Compare expense ratios and tracking error before choosing a fund: see our comparison of all 13 silver ETFs.
Silver or gold?
For most Indian investors, gold is the better core precious-metal holding: it falls less in sell-offs and is less tied to speculative flows. Silver is the higher-risk satellite, with bigger gains and bigger falls. See Best Gold ETFs 2026 for the gold side.
What About the Outlook?
We don't forecast silver prices, and neither can anyone else reliably. What the 2026 crash does show is that silver can halve in two months, and that recoveries can take years: silver's 2011 high in US dollars was not surpassed until 2025. Size your holding so that a long, slow recovery would not hurt your plan.
Silver ETFs Today: Size, Cost and One-Year Return
| Fund | AUM (₹ Cr) | Expense ratio | 1-year return |
|---|---|---|---|
| Nippon India Silver ETF | 32,223 | 0.58% | 58.8% |
| ICICI Prudential Silver ETF | 15,108 | 0.40% | 59.4% |
| HDFC Silver ETF | 8,313 | 0.50% | 58.5% |
| SBI Silver ETF | 6,195 | 0.41% | 59.1% |
| Kotak Silver ETF | 3,955 | 0.35% | 59.2% |
AUM as of 31 August 2026; expense ratios checked 28–29 September 2026; one-year returns to 27 September 2026. The one-year figures look strong only because the start date, late September 2025, was before the big rally.