Precious metals’ fall hits ETF buyers

Gold has gained 62% and silver hassurged 77% year to date amid global uncertainty, tariff warsand diversification away from the dollar.

- 

From 10 Oct, silver ETFs traded at a high premium.

(BLOOMBERG)

The share of gold in India’s own forex reserves hasrisen to13.1%as of June from 9.6% a year earlier, Minthad reported.

However, international gold priceshave dropped 7.9% from their all-time high of $4356 per ounce on 20 October to $4,025 per ounce after US president Donald Trump's statement signalling a ‘fair’ trade deal with China.

Meanwhile, from 10 October, silver ETFs traded at a steep premium overspotsilverprices due to high festive and industrial demand. This elevated premium was on account of lower stocks of silver for physical delivery. However, supply concerns appear to be easing, causing prices to drop. Investorswho got into silver ETFsat this time have seen higher losses than those who might have bought the physical metal.