Indian investors flock to gold and silver ETFs in 2025 amid geopolitical risks and global rate cuts.Indian investors flock to gold and silver ETFs in 2025 amid geopolitical risks and global rate cuts.

Indian Investors Surge into Gold and Silver ETFs

2025/12/13 12:51
What to Know:
  • Kotak Mahindra AMC suspends new investments in silver ETF due to shortages.
  • Record inflows seen in Indian gold and silver ETFs.
  • Global rate cuts and geopolitical tensions drive demand.

In 2025, Indian investors are increasingly turning to gold and silver ETFs, driven by record bullion prices, amid global rate cuts and geopolitical uncertainties.

This trend highlights a shift in investor preference, emphasizing safety as macroeconomic factors fuel demand for tangible asset-backed securities over traditional investments.

The growing interest in gold and silver ETFs among Indian investors reflects a broader market trend. Amid concerns such as geopolitical risks, Kotak Mahindra AMC announced a suspension of new lump-sum investments in its silver ETF Fund of Fund. Kotak Mahindra AMC cited a shortage of physical silver and high premiums over benchmark prices for the suspension. This move highlights pressures on the domestic bullion market, impacting investor choices and market strategies.

Kotak Mahindra Pauses Silver ETF Amid Supply Shortage

Record Gold ETF Inflows Reflect Investor Shift

The suspension by Kotak Mahindra AMC has increased focus on gold ETFs, causing notable market shifts. Record inflows into these ETFs are seen as investors seek stable investments amidst global uncertainties. Financial markets are witnessing a significant reallocation of capital into commodity ETFs as geopolitical tensions rise and interest rates remain in flux. Indian investors are reacting to ensure asset security under current macroeconomic conditions.

Indian Gold ETF Demand Surges During Economic Turmoil

Historically, Indian interest in gold ETFs spikes during economic uncertainty, paralleling past rate cuts by the US Federal Reserve. Similar patterns were observed during financial crises with increased demand for stable assets. Future trends suggest continued ETF demand if geopolitical and economic instabilities persist. Experts predict sustained interest in commodities, highlighting ETFs as strategic components in investment portfolios.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.
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BitcoinEthereumNews2025/09/17 23:52