Silver Price Surge Leaves Investors Behind, Despite 98% Rally

Silver prices surged 98% over the last year, but investors earned only 18%. This significant return gap raises questions about investor behavior and whether they missed the rally or entered at the wrong time.

A report by DSP Mutual Fund found that 56% of money invested in silver ETFs during this period is currently sitting at a loss. The average investor earned 18% on a money-weighted basis, which takes into account both investment amount and timing.

The report notes that FOMO (fear of missing out) can lead investors to buy into an asset after most of the return has already happened. This changes their behavior, causing them to invest more as prices rise rather than when valuations are lower.

The example of silver ETF inflows is striking. The largest monthly inflow on record was ₹11,761 crore in January 2026, but this occurred around the price peak. Investor demand became strongly pro-cyclical, with more money chasing the asset as prices climbed higher.