Gold and silver ETFs surge: What investors must know

Akshaya Tritiya, traditionally seen as an auspicious day for buying gold, has evolved far beyond the jeweller's counter. Increasingly, Indian investors are turning to gold and silver exchange-traded funds (ETFs) as a modern, digital alternative. The latest numbers underscore the shift: total turnover in gold and silver ETFs on Akshaya Tritiya (April 30, 2025) hit Rs 644 crore, almost three times last year's level of Rs 224 crore. Gold ETFs saw turnover rise to Rs 331 crore (from Rs 130 crore last year), while silver ETFs surged to Rs 313 crore (from Rs 95 crore), marking an even stronger jump (over three times). These numbers tell a broader story about changing investor habits and the growing role of ETFs in Indian portfolios. What's driving this ETF surge? Several forces are at work behind the jump in volumes: Convenience: Investors can gain gold or silver exposure without worrying about purity or safe storage. ETFs trade through a demat account, just like stocks. Cost efficiency: Physical gold comes with making charges, storage costs, and purity risks. In contrast, ETFs carry lower transaction costs, and importantly, better liquidity reduces trading friction. Investor sentiment: Historically, A

This article was originally published on May 02, 2025.