In a month when equity inflows cooled, investors turned to the safety of gold and silver ETFs, which saw their best inflows in months as bullion prices surged to record highs.
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Gold and Silver ETFs Shine in August 2025
Key Highlights
- Gold ETFs hit a 7-month high with strong inflows.
- Silver ETFs saw their best month since June.
- Rising prices of both metals boosted investor interest.
- Equity mutual fund inflows slowed down due to weak markets and global tensions.
Why Investors Chose Gold and Silver
In August 2025, many investors turned to gold and silver ETFs instead of equity mutual funds. The reason was global uncertainty, unstable stock markets, and rising geopolitical risks. Precious metals are considered safe-haven assets, which protect wealth during tough times.
Gold ETFs
- Inflows: ₹2,190 crore (highest since January 2025).
- Recovered from outflows seen in March–April.
- Price on MCX: up 5%, touching ₹1,01,967 per 10 grams.
- Annual growth: 35–40%.
Silver ETFs
- Inflows: ₹1,759 crore (biggest since May).
- Price on MCX: up 9%, reaching ₹1,17,468 per kg.
- Annual growth: 40–45%.
- Demand driven not just by safety, but also solar panels, electric vehicles, and 5G technology.
Expert Opinions
- Anand Vardarajan (Tata Asset Management): Gold inflows in August were one of the highest in recent history, showing strong investor trust.
- Suranjana Borthakhur (Mirae Asset): Investors are balancing between booking profits and making new allocations to gold.
- Hemen Bhatia (Angel One AMC): Gold continues to be a reliable hedge and diversifier for long-term portfolios.
Sector Growth
- Gold ETF assets jumped from ₹37,390 crore (Aug 2024) to ₹72,496 crore (Aug 2025) — a 94% rise.
- Silver ETF assets grew from ₹22,963 crore (Jul 2025) to ₹26,294 crore (Aug 2025).
ETF Inflows Summary Table
| Asset Type | Inflows (₹ Crore) | Price Growth (Aug 2025) | 1-Year Growth |
|---|---|---|---|
| Gold ETFs | 2,190 | +5% | 35–40% |
| Silver ETFs | 1,759 | +9% | 40–45% |
| Other ETFs (Equity) | 5,485 | Moderate rebound | N/A |
FAQs
Q1. Why are investors moving to gold and silver ETFs?
Because of global tensions, falling equity returns, and rising metal prices, investors view gold and silver as safe and stable asset classes.
Q2. Which performed better in August — gold ETFs or silver ETFs?
Both did well, but silver ETFs gained more in percentage terms (+9%) compared to gold (+5%).
Q3. Will this trend continue in 2025?
Experts believe demand for precious metals will stay strong due to inflation fears, global uncertainty, and industrial demand for silver.
Q4. How much did gold and silver ETF assets grow in one year?
Gold ETF assets nearly doubled (up 94%), while silver ETFs rose by over ₹3,300 crore in one month.