Silver ETFs hit the record levels as MCX prices cross ₹3.2 lakh/kg; should investors buy now?
- 20th January 2026
- 04:40 PM
- 3 min read
Summary
Silver prices touched fresh record highs on January 20, lifting silver exchange-traded funds (ETFs) by up to 10%. The rally has been driven by geopolitical tensions and strong industrial demand, though elevated valuations and sharp volatility suggest a more cautious near-term outlook.Mumbai | January 20
Silver prices surged to fresh lifetime highs on Tuesday, pushing silver exchange-traded funds (ETFs) also to record levels, as renewed geopolitical tensions between the US and Europe fuelled safe-haven demand for precious metals.
On the MCX, Silver futures for March delivery rose over 3.5% to hit an all-time high of ₹3,27,998 per kilogram on the MCX. Contracts for May and July expiries also gained more than 4%, touching ₹3,36,940 and ₹3,49,066 per kilogram, respectively. In the international market, spot silver climbed to a record $94.72 an ounce.
Silver ETFs mirror price surge
Silver ETFs mirrored the sharp move in the underlying metal, with several funds posting strong gains during the session.
Groww Silver ETF surged over 10% to hit a fresh 52-week high, while Tata Silver ETF, Motilal Oswal Silver ETF, Aditya Birla Sun Life Silver ETF, Edelweiss Silver ETF and Mirae Asset Silver ETF rose over 5% each to record highs.
UTI Silver ETF, DSP Silver ETF, Axis Silver ETF, HDFC Silver ETF, Zerodha Silver ETF and Kotak Silver ETF gained over 4%, while ICICI Prudential Silver ETF, Nippon India Silver ETF (Silverbees) and SBI Silver ETF added nearly 4%.
What is driving silver prices?
The latest rally in silver has been triggered by rising geopolitical uncertainty after US President Donald Trump announced fresh tariffs on imports from several European nations, amid renewed tensions linked to Greenland.
The US has imposed 10% tariffs on select European imports starting February 1, with duties set to rise to 25% from June 1 if negotiations fail. Trump has also not ruled out the use of military pressure, prompting strong pushback from European leaders and warnings of retaliatory economic measures.
Beyond geopolitics, silver continues to draw support from a structural supply-demand imbalance. Industrial demand from clean energy, electronics and electric vehicle segments remains strong, while investment inflows have amplified price movements.
Should investors buy silver ETFs now?
Market experts view silver’s recent surge as part of a broader uptrend rather than a one-off spike. However, prices are now at elevated levels, increasing near-term volatility. Sharp rallies in silver are often followed by periods of consolidation, particularly when market sentiment becomes crowded, making fresh entry at record highs riskier.
The broader view remains mixed but constructive. While the long-term case for silver continues to be supported by supply constraints and steady industrial demand, short-term positioning suggests a more cautious approach. Staggered accumulation during corrections is generally seen as a more balanced way to gain exposure, while partial profit-taking at higher levels can help manage volatility.
Overall, silver’s trend is considered intact, but disciplined positioning and patience remain critical as price swings are likely to stay sharp in the near term.
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