Silver ETFs soar on festive demand, supply crunch

"In the past three to four weeks, we have seen a surge in silver demand," said Vikram Dhawan, head of commodities and fund manager at Nippon India Mutual Fund, which runs the largest gold and silver ETFs in the country.

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He cited multiple factorsthe upcoming festive season, increased physical demand from households for bars and ornaments, as well as from industrial buyers, restocking by traders and retailers, and rising ETF demand.

The anticipated revival of private capital expenditure (capex), a key sector trigger, is missing. Nomura noted that the value of new private capex announced in the September quarter declined 46% to a five-quarter low of ₹5.2 trillion. Current uncertainties could cause further delays. However, recent goods and services tax cuts may boost consumption and industrial capex in H2FY26.