Gold and Silver Investments Rise Sharply: Why Are More Investors Turning to ETFs?

Gold and silver ETFs have seen strong growth in assets under management as investors look beyond traditional investments amid market volatility.

Amid fluctuations in the stock market, gold and silver are attracting increasing attention from investors looking to diversify their portfolios. This trend is particularly visible in the rapid growth of assets under management (AUM) in gold and silver exchange-traded funds (ETFs).

According to the figures provided, the asset value of gold and silver ETFs increased significantly between July 2025 and July 2026, reflecting growing investor interest in precious metals through financial markets.

Gold ETF Assets Rise to ₹1.73 Lakh Crore

Gold has traditionally been an important asset for Indian households. However, investors are increasingly exploring financial products such as gold ETFs instead of relying only on physical gold.

In July 2025, gold ETF assets stood at around ₹68,000 crore. By July 2026, the figure had increased to approximately ₹1.73 lakh crore.

This represents an increase of around 2.6 times in one year, highlighting the rapid expansion of gold ETF investments during the period.

Silver ETFs See Faster Growth

Silver ETFs recorded an even sharper increase in asset value.

In July 2025, silver ETF assets were around ₹23,000 crore. By July 2026, the figure had risen to approximately ₹78,000 crore, representing a roughly 3.4-fold increase.

The growth indicates that silver ETFs recorded a faster increase in assets than gold ETFs during the same period.

Why Are Investors Choosing Gold ETFs?

Gold has long been considered an important asset in India, particularly in the form of jewellery, coins and bars. However, financial-market products provide investors with another way to gain exposure to gold prices.

Gold ETFs allow investors to participate in movements in the price of gold without purchasing and physically storing the metal. This can eliminate concerns associated with storage and security of physical gold.

Gold can also behave differently from equities and other financial assets at different points in the market cycle. As a result, some investors include gold as part of a diversified investment portfolio.

Physical Gold vs Gold ETFs

Buying physical gold and investing through an ETF involve different considerations. Physical gold can be purchased as jewellery, coins or bars, while gold ETFs are traded through the financial market.

Investors considering gold ETFs should understand factors such as market price movements, fund expenses, taxation, brokerage and other applicable chargesg> before investing.

Gold and Silver Attracting Investor Attention

The sharp increase in the AUM of gold and silver ETFs between July 2025 and July 2026 highlights the growing interest in precious metals as financial assets.

While gold continues to have a strong traditional presence among Indian households, the increasing use of ETFs shows how investors are also accessing precious metals through modern investment products.

Investors should assess their financial goals, risk tolerance and overall asset allocation before making investment decisions. Past performance or growth in ETF assets does not guarantee future returns.