Silver ETFs Plunge on Rate Hike Fears and Rising Yields
Silver exchange-traded funds (ETFs) on the NSE took a hit today, falling sharply in line with a decline in the metal itself. The drop was triggered by a surge in global yields and rising odds of a US rate hike, which pressured precious metals. Among the affected ETFs were Nippon India Silver ETF, HDFC Silver ETF, ICICI Prudential Silver ETF, Aditya Birla Sun Life Silver ETF, and Tata Silver ETF.
Nippon India Silver ETF (Silver BEES) dropped 4.05% to ₹214.48, while HDFC Silver ETF fell 4.11% to ₹214.35. ICICI Prudential Silver ETF slipped 3.94% to ₹224.28, and Aditya Birla Sun Life Silver ETF eased 3.91% to ₹224.35. Tata Silver ETF declined 3.92% to ₹21.80.
The COMEX silver continuous contract was down about 2% at $63.63 an ounce. The selloff is linked to a shift in the global rate backdrop, which has weighed on both gold and silver. A fresh surge in crude oil has pushed US Treasury yields toward multi-year highs and lifted the probability of a September Federal Reserve rate hike well above 70%. Both moves work against metals that pay no yield.
Silver carries an extra layer of risk due to its heavy industrial use in electronics, solar panels, and manufacturing. This dual sensitivity is why silver ETFs are falling faster than gold in the current shock.