Overview

• Silver crossed $50 an ounce this week, yet several Indian silver ETFs traded above fair value with reported premiums as high as 18% and Nippon India’s Silver ETF about 5.5% over iNAV.
• Kotak Mutual Fund suspended lump‑sum and switch‑in investments in its Kotak Silver ETF Fund of Fund, keeping SIPs and redemptions open and stating it will reopen once domestic premiums normalise.
• Kotak said domestic spot silver briefly carried a 12% intraday premium over import parity on October 9, closing near 5.7%, with a buying premium near 10% and a selling premium near 3%, and it flagged tight supply possibly lasting through October.
• Analysts and wealth managers pointed to limited deliverable silver for market makers, import‑parity premiums, and trading‑hour mismatches as drivers of ETF‑to‑iNAV gaps, urging investors to check iNAV before buying.
• Separate industry data show bullion flows remain strong with Indian gold ETF AUM above $10 billion and combined gold‑silver ETF assets crossing Rs 1 trillion, alongside growing interest in dual‑metal fund‑of‑fund products.