Silver ETFs Fall More Than 2% as Global Silver Prices Slide

મુખ્ય ટેકઅવે

• HDFC Silver ETF was down about 2.7% during 22 October trade. 
• Silver ETFs from Tata, SBI, Kotak, UTI, Axis, Mirae Asset and DSP were down more than 2%. 
• Spot silver fell 3.4% internationally to around $55.97 during the session. 

Silver exchange-traded funds came under selling pressure on 22 October as a decline in the underlying precious metal filtered through to Indian exchange-traded products. 

HDFC Silver ETF was down around 2.7% at about 2 PM, while Tata Silver ETF, SBI Silver ETF, Kotak Silver ETF, UTI Silver ETF, Axis Silver ETF, Mirae Asset Silver ETF and DSP Silver ETF were each trading more than 2% lower. 

By the end of the session, HDFC Silver ETF was quoted at ₹189.59 on the NSE, down 2.76%, according to Business Standard market data. 

The ETF declines coincided with weakness in international silver. 

Spot silver fell 3.4% to $55.97 during the session. Precious-metal markets were responding to changing expectations around US interest rates as well as movements in inflation-sensitive assets. 

ETFs Track Silver, but Returns Can Vary 

Silver ETFs seek to provide returns broadly linked to domestic silver prices by holding silver or permitted silver-related assets. 

The actual return of an individual ETF does not have to match the underlying metal perfectly. 

Expense ratios, cash balances, tracking difference, domestic currency movements and differences between an ETF's traded price and net asset value can create variations. 

That makes the reported declines in individual ETFs important. They are actual market-price movements rather than percentages inferred directly from the fall in international silver. 

Silver has historically been capable of larger price swings than gold because its price can be influenced by both investment demand and industrial consumption. 

For ETF investors, the 22 October movement represents a change in the market value of the underlying commodity rather than a change to the investment mandate of the schemes themselves. 

As with other commodity-linked funds, past changes in silver prices do not indicate future ETF performance.