Silver & Gold ETFs Rally up to 9% as Bullion Boom Continues: Should You Invest Now?
Overview of Recent Market Activity
– On Wednesday, gold and silver futures soared for the second consecutive day, leading commodity-based ETFs to experience gains of up to 9%.
– This bullish trend was bolstered by escalating geopolitical tensions, particularly following reports of the U.S. military downing an Iranian drone near its aircraft carriers.
– Bargain hunters capitalized on lower prices, while a softer U.S. dollar further supported the rise in gold prices.
Key ETF Performances
– Silver ETFs:
– Edelweiss Silver ETF
– Kotak Silver ETF
– Mirae Asset Silver ETF
– Zerodha Silver ETF
– Tata Silver ETF
– All surged up to 9% on Wednesday.
– Gold ETFs:
– Wealth Company Gold ETF rose by 8%.
– Kotak Gold ETF, Mirae Asset Gold ETF, and Bandhan Gold ETF saw 7% increases.
– Nippon India Gold ETF, the largest in terms of assets under management, experienced a 5% rise, reaching a day’s high of Rs 132.
Futures Market Insights
– Silver Futures: On March 5, 2026, MCX silver futures surged 4%, closing at Rs 2,78,663 per kg.
– Gold Futures: Gold futures for April 2, 2026, climbed 3% to Rs 1,58,420 per 10 grams.
– International Market:
– Spot gold rose 2.2% to $5,044.74 per ounce after a remarkable 5.9% rally Tuesday—its largest one-day gain since November 2008.
– Spot silver increased 2.1% to $86.92 an ounce, following a record high of $121.64.
The Impact of the Dollar
– The U.S. dollar weakened against most major currencies on Tuesday, except for the yen, following strong U.S. economic data and expectations of a less dovish Federal Reserve.
– A softer dollar typically boosts bullion prices by making dollar-denominated metals cheaper for international investors.
Insights from Industry Experts
– Abhishek Bhilwaria from BhilwariaMF emphasized the growing preference for gold and silver ETFs as a practical way for investors to gain exposure without the complexities of physical storage or purity verification.
– He highlighted the success of global giants like the SPDR Gold Trust (GLD) and iShares Silver Trust (SLV), as well as Indian options like Nippon India Gold BeES and the Zerodha Gold ETF.
Long-Term Strategy Recommendations
– Sandip Raichura, CEO of Retail Broking and Distribution at PL Capital, suggests:
– Gold should consistently make up 10% of client portfolios.
– Due to its volatility, silver should preferably be accumulated through a SIP (Systematic Investment Plan) over a period of 5 years.
Conclusion: Time to Invest?
With gold and silver ETFs experiencing significant rallies amidst favorable market conditions, now may be an opportune time for investors to consider these assets. As experts advise a balanced approach with a focus on the long-term, the current landscape favors those looking to diversify into precious metals. Engaging with these ETFs could provide a strategic advantage without the challenges associated with physical ownership.