Shruti Jain, Chief Strategy Officer at Arihant Capital Markets, believes silver’s strength lies in this dual character.
“Silver’s appeal goes beyond its status as a precious metal. Its industrial usage in sectors like solar energy, electric vehicles, and electronics gives it a strong structural demand story,” she said.
That structural story is already playing out in the numbers.
As per AMFI data, silver exchange-traded funds (ETFs) in India witnessed a 125% jump in assets under management (AUM) in the year ending May 2024. Gold ETFs, by comparison, grew just 19.4% during the same period.
The gap highlights growing investor interest in silver as both a tactical and thematic play.
According to Jain, “One of the key drivers of this renewed interest is silver’s role in clean energy. It’s a critical input in solar panels due to its high conductivity and efficiency. As governments push for energy transition, silver stands to benefit directly.”
Silver’s investment case also benefits from its comparatively lower correlation with equities, making it a viable diversification tool. Jain points out that many retail investors are increasingly exploring silver ETFs for this reason.
“We’re seeing investors use silver tactically during periods of volatility, but also strategically—especially those looking to diversify outside of traditional equity-debt allocations,” she said.
Still, silver is not without its risks. Its higher price volatility compared to gold means that it may not yet match gold’s reputation as a safe-haven asset. Jain acknowledges this but sees it as an opportunity for a certain investor segment.
“Silver’s volatility can work in favour of younger or more risk-tolerant investors who are seeking long-term exposure to global macro themes like green infrastructure,” she noted.
The accessibility and transparency of silver ETFs are also helping expand participation. These funds allow investors to gain exposure to silver without needing to physically hold the commodity, making it easier to include in long-term portfolios.
Jain advises investors to assess their financial goals and risk profile when choosing between gold and silver.
“Gold still offers greater liquidity and capital preservation. But silver can be a valuable complement, especially for those seeking to tap into industrial and technology-led growth,” she said.
Rather than viewing silver and gold as competing assets, she recommends treating them as complementary components of a well-balanced portfolio.
