【India】Gold and Silver Outshine Stock Market, Investment in Precious Metal ETFs Breaks Records; 2.8 Million Accounts Opened

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Editor’s Note

This article highlights a significant shift in retail investment patterns, with a record influx into gold and silver ETFs in January 2025. The data suggests a notable move by individual investors toward precious metals as a core portfolio holding.

Gold and Silver Price Outlook
Record Inflows into Precious Metal ETFs

Retail investor interest in gold and silver Exchange Traded Funds (ETFs) and Fund of Funds (FoFs) is witnessing a massive surge, a phenomenon rarely seen in any mutual fund (MF) category before.

In January 2025, a total of 2.8 million investor accounts or folios were added to precious metal ETFs, accounting for 55 percent of the total folio growth at the industry level last month. The growth last month was more than five times the average monthly growth seen in 2025. In comparison, equity schemes added just 1.1 million accounts.

Growth in Fund of Funds

Investor participation is also increasing through Fund of Funds (FoFs). The number of new accounts in FoFs has seen a sharp rise in recent months. FoFs include all schemes, including equity, debt, and commodity. This growth is in line with the increase seen in gold and silver ETFs. In January, 2.2 million accounts were added to FoFs.

Silver ETFs Outpace Gold

The industry does not provide separate data for gold and silver ETFs. Interestingly, the number of new accounts in silver ETFs was higher than in gold ETFs, even though gold is a much larger fund category. In January, 1.6 million new accounts were added to silver ETFs, while gold ETFs saw an increase of 1.2 million accounts.

Expert Analysis on the Trend

According to experts, while the sharp rally in precious metal prices is attracting new investors to gold and silver schemes, the relatively higher volatility in silver is also luring investors looking to capitalize on momentum and boosting short-term trading activity in silver ETFs.

“Silver inherently has more structural volatility compared to gold, which attracts a higher number of investors. The sharp price swings are encouraging investors to take short-term opportunities. This is also evident from the faster growth in silver ETF folios compared to gold ETFs,” said Shriram BKR, Senior Investment Strategist at Geojit Investments.
“This surge in silver ETFs is partly driven by expectations of short-term gains. A 170 percent annual return naturally tempts momentum traders looking for quick profits, especially when recent corrections have been minor,” said Parth Sen Gupta, Joint MD and CEO of Systematix Private Wealth, citing the same reason for the spike in silver ETF portfolios.
Net Investment Flows Reflect Interest

The growing investor interest in gold and silver is also clearly visible in the investment inflows. Last month, for the first time, net investment in Gold ETFs exceeded the total investment in active equity mutual fund schemes. In January, Gold ETFs saw a net inflow of Rs 24,040 crore while Silver ETFs saw about Rs 9,500 crore. Investment in active equity schemes continued to decline, with net investment reaching a seven-month low of Rs 24,028 crore.

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⏰ Published on: February 12, 2026