Silver & gold ETFs rally up to 9% as bullion boom continues. Should you invest now?

Gold and silver futures opened higher for a second consecutive session on Wednesday, pushing commodity-based ETFs up by as much as 9% during the period. Prices were supported by rising geopolitical tensions after the US military reported shooting down an Iranian drone near one of its aircraft carriers. Bargain buying at lower levels and a softer US dollar also lent support to gold prices.

Edelweiss Silver ETF, Kotak Silver ETF, Mirae Asset Silver ETF, Zerodha Silver ETF and Tata Silver ETF gained up to 9% on Wednesday.

The Wealth Company Gold ETF surged up to 8%, followed by Kotak Gold ETF, Mirae Asset Gold ETF, and Bandhan Gold ETF, which rallied upto 7%. Nippon India Gold ETF, the largest fund in the category based on the assets managed, gained 5% in the mentioned time frame to a day’s high of Rs 132.Also Read | Gold and silver ETFs jump up to 13% after 3-day sell-off. Here’s what drove the rebound

Sandip Raichura, CEO of Retail Broking and Distribution & Director, PL Capital, shared with ETMutual Funds that gold should form 10% of client portfolios at all points in tim,e and silver, being a very volatile commodity, should ideally be accumulated via the SIP route and with a 5-year timeframe

On Wednesday, MCX silver futures for March 5, 2026, rose 4%, up Rs 10,648 to Rs 2,78,663 per kg. Gold futures for April 2, 2026 delivery rebounded Rs 4,611, or 3%, to Rs 1,58,420 per 10 grams.In the international market, spot gold climbed 2.2% to $5,044.74 per ounce after surging 5.9% on Tuesday — its biggest single-day gain since November 2008. The metal had hit a record high of $5,594.82 last Thursday. Spot silver rose 2.1% to $86.92 an ounce, after touching a record high of $121.64 on Thursday.According to a report by ETMarkets, the dollar slipped against most major currencies, barring the yen, on Tuesday as traders consolidated recent gains driven by strong US economic data and expectations of a less-dovish Federal Reserve. A softer dollar tends to support bullion prices by making dollar-denominated metals cheap.

On February 3, 2026, these ETFs saw rebounds of up to 13% following a sharp three-day sell-off.

Abhishek Bhilwaria, BhilwariaMF ( AMFI registered MFD) shared with ETMutualFunds that in the evolving financial landscape of 2026, gold and silver Exchange-Traded Funds (ETFs) have emerged as the preferred vehicle for investors seeking exposure to precious metals without the logistical burdens of physical storage or purity verification.

Also Read | Quant MF cuts gold, silver exposure near peak levels in multi-asset fund

“This shift is particularly evident in the success of global giants like the SPDR Gold Trust (GLD) and iShares Silver Trust (SLV), alongside cost-efficient Indian domestic options such as Nippon India Gold BeES and the Zerodha Gold ETF.”

For Indian investors, these digital assets also offer a streamlined fiscal structure, with long-term capital gains (held for over a year) taxed at a flat 12.5%, making them a highly competitive alternative to traditional bullion, Bhilwaria said.