Silver ETF: UTI Asset Management Company on Saturday said that new lump-sum and switch-in investments in UTI Silver ETF Fund of Funds have been temporarily stopped from October 13, 2025.
The company clarified that this step has been taken due to the current market situation and shortage of physical silver in the country. Silver prices are trading at a premium compared to international levels. This affects the valuation of the fund.
Second stop in silver fund
This is the second time this week that new investments in silver-based funds have been stopped. Earlier on Thursday, Kotak Mahindra Asset Management Company had also temporarily stopped new investments in the Silver ETF Fund of Funds. Kotak said that this restriction will be lifted once the supply improves after Diwali.
silver price record
Spot silver hit a new record of $51.22 an ounce on Thursday, rising above the $51 an ounce level for the first time. Talking about the Indian market, the rate of silver in Delhi reached Rs 1,74,000 per kg on Saturday. Compared to Friday, silver has become costlier by Rs 7,000.
silver premium in india
India is the world’s largest silver consumer. The premium of silver over domestic prices here increased by almost 10% on Thursday as festive demand was strong and supply was limited. According to bullion dealers, investors are showing enthusiasm in buying silver during the festive season.
Silver prices are continuously increasing, the main reason behind this is the increase in jewelery and industrial demand. The share of industrial demand in the total demand is about 60-70 percent.
Premium over MCX
According to Nitin Kedia, National General Secretary of All India Jewelers and Gold Federation (AIJGF) and Founder of KediaFintech.com, India’s silver market is currently facing a surprising rise. The main reason behind this is strong physical demand and increasing premium at the international level.
Kedia said, ‘The increasing demand for ETFs has pushed silver prices up significantly in the physical market. In the wholesale markets of India, silver is being sold more than the MCX rate by about ₹ 20,000 per kg. At the same time, the difference of 250 cents between COMEX future and spot market is the highest ever, which shows the supply crisis.
increasing inclination towards silver
Kedia says that the gold-silver ratio has fallen to 78.80. This shows that investors are increasingly inclined towards silver.
He said, ‘The atmosphere in the market is such that physical silver will soon run out. Some people are buying silver by mortgaging gold, and some are also shifting funds for house construction to this metal. This trend is as exciting as it is risky.
Avoid buying at current rates
Kedia advised investors that the long-term direction of silver looks positive, but emotional buying should be avoided at the current high levels. He said, ‘The sustainability of this rally going forward will depend on industrial demand, ETF inflows and global monetary policies.’
Also read: This is how you can take advantage of the ongoing stormy rise in gold and silver.
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