Srinagar: As stock markets remain volatile amid rising global geopolitical tensions, many investors are shifting their money from shares to safer investment options such as gold and silver.
According to recent market data, Exchange Traded Funds (ETFs) backed by precious metals have seen a sharp rise in investments. An Exchange Traded Fund is a type of investment fund that is traded on stock exchanges, much like shares. Gold and silver ETFs allow investors to invest in these metals without physically buying and storing them.
Gold ETFs have risen by 5 to 8 per cent in recent weeks as demand for the yellow metal increased following a sharp decline in major stock market indices and individual shares. Silver ETFs performed even better, rising between 8 and 9 per cent during the same period.
The total Assets Under Management (AUM) — which refers to the total market value of money managed by a fund — in gold ETFs increased significantly. In January this year, gold ETFs managed ₹1.84 lakh crore, compared to ₹51,839 crore during the same period last year.
Similarly, silver ETFs saw a strong rise in Assets Under Management, which increased to ₹1.17 lakh crore in January, up from ₹13,566 crore a year earlier.
Investor interest has been strong over the past year. Net inflows into gold ETFs reached ₹96,195 crore last year. In January alone, fresh investments worth ₹24,040 crore were recorded, as many investors used the dip in gold prices as an opportunity to buy more.
Silver ETFs also witnessed growing interest. Net inflows more than doubled in January to ₹9,463 crore, compared to ₹3,962 crore in December 2025. The Assets Under Management of silver ETFs surged by 61 per cent to reach a record ₹1.16 lakh crore in January, up from ₹72,652 crore in December, largely driven by rising silver prices.
Market experts say that during times of uncertainty and falling stock markets, investors often move towards gold and silver, which are traditionally seen as safer assets.
