Indian silver exchange-traded funds (ETFs) tumbled as much as 20% on Thursday, wiping out the massive gains they had built over the past weeks. Nippon
India Silver ETF, ICICI Prudential Silver ETF, and Kotak Silver ETF all fell 19–20% in morning trade, slipping below their indicative net asset values (iNAVs) as the unusually high premiums they had been trading at disappeared. Interestingly, the crash was mostly limited to ETFs. Physical silver, international spot prices, and domestic MCX futures saw much smaller declines. Global silver held steady at $92.27 an ounce, just days after hitting a record high of $95.87 on Tuesday. MCX March silver futures fell only about 2%. Also Read: Why Gold And Silver Are Hitting Record Highs — And What Trump’s Tariff Warning Has To Do With It The sharp drop highlights how volatile silver ETFs can be, often swinging wildly compared with actual silver prices. "We are experiencing very high price volatility in both precious metals," an ET report cited Manoj Kumar Jain of Prithvi Finmart. "We suggest staying away from taking fresh positions in both precious metals in today's session and wait for some stability in the markets."
What's Behind This Sell-off
The sell-off came as the US dollar strengthened and global risk appetite improved, reducing demand for safe-haven assets. Geopolitical tensions also eased after US President Donald Trump ruled out military action over Greenland and signalled he would not impose tariffs on European nations after NATO discussions.
"Gold and silver prices show heavy profit booking after his comments amid risk aversion in the global financial markets," Jain added, while noting that ongoing global uncertainty due to trade tensions could still support some safe-haven buying.
Despite the turmoil, some remain optimistic. Ponmudi R, CEO of Enrich Money, said, "COMEX Silver is trading firm near $92–$93 after recently touching record highs above $95.80. The rally is driven by a combination of robust industrial demand (solar, EVs, AI, electronics) and safe-haven flows amid tightening global supply."
On Wednesday, international silver futures settled at $92.94 per troy ounce, down 1.79%, while domestic MCX silver futures closed at Rs 3,18,492 per kilogram, down 1.60%.
Jain sees support for silver at $84 per troy ounce and resistance at $94.60–$96.80. On MCX, he expects support at Rs 3,14,000–Rs 3,06,000 and resistance at Rs 3,24,000–Rs 3,28,000.
Ponmudi added that silver could bounce back if it stays above Rs 3,15,000, with potential targets of Rs 3,35,000–Rs 3,50,000, but drops below Rs 3,00,000 could push it down to Rs 2,90,000–Rs 2,80,000.
