Silver investment: Emkay predicts rally in prices; ETFs & FoFs outperform physical silver
Silver prices show bullish momentum, potentially reaching $53-$62 per ounce. Silver ETFs and FoFs have significantly outperformed physical silver, with some yielding over 50% returns. Strong long-term fundamentals, driven by industrial demand in sectors like renewable energy, support this outlook. Emkay Wealth recommends tactical 6-12 month investments via ETFs/FoFs to capture returns amidst market fluctuations.
New Delhi: After the recent fall in the silver market, there are signs of bullish momentum once again. According to Emkay Wealth Management, silver prices can jump to $53 per ounce in the short term. After this, the next target can go up to 58 and 62 US dollars. The report states that the spot price of silver in the international market remains at around $49 per ounce. Whereas, there is strong support at $47.60. Apart from this, there is also big support at 45.60 and 42 dollars. Due to the easing of restrictions on critical minerals and profit booking between the US and China, the prices have softened. But, a fresh rally can be seen soon.
ETF and FoF beat Physical Silver
According to the Emkay Wealth report, Silver ETFs and Silver Fund of Funds (FoF) have performed better than physical silver over a three-year period. Due to good tracking and fund management in the ETF, investors have received strong returns. As of 31st October 2025, ICICI Prudential and Nippon India Silver ETF have given returns of more than 50% in a year, whereas physical silver has given returns of about 49%. These ETFs have also registered gains of 34— 56% in the three- and six-month periods. In terms of AUM, Nippon India Silver ETF is leading with Rs 15,284 crore, while ICICI Prudential's AUM is Rs 9,481 crore.
The Silver FoF category has also shown similar performance to ETFs. Their returns in one year have been 49-50%. ICICI Prudential Silver ETF FOF is at the forefront with an AUM of Rs 3,232 crore. The slight difference in the returns of ETFs and FOFs is due to fund-level expenses.
According to the report, despite short-term volatility, silver's long-term fundamentals are strong. In sectors like renewable energy, electronics and industrial upgradation, the consumption of silver is increasing steadily. Rising demand amidst limited supply is giving stability and strength to prices.
Silver ETF and FOF investment strategy
Emkay Wealth Management recommends that investors can consider 6 to 12 months of tactical investments through ETFs and FOFs in silver. With fixed target levels, this strategy can help in capturing better returns, especially at a time when the market continues to fluctuate.
Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.