Silver ETFs Deliver Strong Returns, But Timing Key to Investor Success

Silver ETFs have seen significant inflows in the past year, thanks to the metal's strong rally. However, despite delivering a 98% return over the last 12 months, 56% of investor money is still at a loss.

This gap between the market return and investor returns can be attributed to the timing of investments. Many investors entered the market after silver prices had already risen sharply, missing out on most of the gains.

The difference is evident in the data from DSP's Netra report, which shows that a large part of the investment came after silver had already risen significantly. In January 2026 alone, Silver ETFs received Rs 11,761 crore, the biggest monthly inflow on record, but this influx of money was largely invested at prices near the peak.

Sahil Kapoor, Executive Director and Head of Product at DSP Mutual Fund, explains that this is essentially a timing story. 'The 98% return is for silver itself, while the 18% return is for the average rupee invested in Silver ETFs,' he says.