Silver ETFs crash in 2026: top funds sink up to 20%

Introduction: silver ETFs take the bigger hit

Indian precious metal exchange-traded funds (ETFs) saw sharp declines across multiple trading sessions, with silver-linked funds consistently falling more than gold. The moves came alongside steep corrections in gold and silver prices on the Multi Commodity Exchange (MCX) and a jump in the U.S. dollar after stronger-than-expected January jobs data. In one session, the sell-off intensified enough to push several silver ETFs into lower circuits on the National Stock Exchange (NSE). The pattern was clear in the data: when both metals fell, silver-linked ETFs bore the brunt.

What triggered the sharp moves

A key trigger cited was the U.S. Federal Reserve outcome, after which gold and silver prices fell sharply and ETFs tracked the decline. A separate leg of selling was linked to a surge in the U.S. dollar, following January jobs data that reduced expectations of near-term interest rate cuts. In India, the pressure showed up directly in MCX futures, where silver saw deeper percentage declines than gold in several instances. The episodes also coincided with heightened volatility ahead of major events such as Union Budget 2026, as noted in market coverage.

Thursday selling: silver slides more than gold

On a Thursday session referenced in the data, silver-linked ETFs were described as the biggest losers, with declines exceeding 6%, while most gold ETFs fell between 2% and 3%. Among silver funds, HDFC Silver ETF was the biggest loser with a 6.42% fall, followed by Kotak Silver ETF down 6.39% and SBI Silver ETF down 6.35%. Nippon India Silver ETF and ICICI Prudential Silver ETF fell 6.26% each, and Zerodha Silver ETF also declined 6.26%. In the same broader move, several gold ETFs were reported to have fallen nearly 6% intraday, highlighting that the intensity varied by the specific session and product.

Price check: Nippon India Silver ETF level cited

One datapoint captured the speed of the fall during the intraday slide. Nippon India Silver ETF was reported down 7.57% to Rs 219 per unit at 2 pm on a Thursday. The same session noted an approximate 7% single-day decline across multiple silver ETFs, including Tata Silver Exchange Traded Fund, Groww Silver ETF, HDFC Silver ETF, ICICI Prudential Silver ETF, Kotak Silver ETF and Zerodha Silver ETF.

Friday shock: dollar strength, deeper drawdowns

In another session described as Friday, silver ETFs plunged up to 10% after the U.S. dollar surged on the back of strong January jobs data. Kotak ETF was reported to have crashed 10% to a day’s low of Rs 225.11. Edelweiss Silver ETF, SBI Silver ETF and Zerodha Silver ETF were also cited among those down up to 9% each. Gold funds fell too, but the reported declines were smaller in comparison, with Tata Gold ETF down about 6% and SBI Gold ETF and Nippon India Gold ETF down around 4% each.

February 2026 rout: MCX moves and recent recovery erased

The data also points to a particularly sharp sell-off on Thursday, February 5, 2026, when both metals and their ETFs dropped steeply. Silver ETFs were described as tumbling by approximately 16-20% for some funds, including Axis Silver ETF and Kotak Silver ETF. HDFC Silver ETF, Nippon India Silver ETF and SBI Silver ETF were each cited as down around 15% that day. Gold ETFs fell as well, but less sharply, with declines ranging from 4.5% to 6% across offerings from Aditya Birla Sun Life, Axis, Tata, Nippon India and DSP.

On MCX, gold futures for March delivery dipped 1.58% to approximately ₹1,48,455 per 10 grams, while March silver contracts fell 9% to ₹2,44,654 per kilogram. The same update said the selling pressure erased gains from a brief two-day recovery after a dramatic sell-off the prior week, when silver and gold spot prices had fallen 32% and 13%, respectively.

NSE session: silver ETFs crash up to 18.7%

In a separate NSE session highlighted in the data, silver funds crashed as much as 18.7% in a single day. Tata Silver ETF fell 18.71%, while HDFC Silver ETF was down 15.00% and Groww Silver ETF declined 14.34%. Gold ETFs also fell in the same session, including Tata Gold ETF down 4.32%, Mirae Asset Gold ETF down 4.28% and HDFC Gold ETF down 4.27%. The contrast reinforced the point made repeatedly in the updates: silver ETFs were more volatile and saw steeper cuts than gold ETFs.

Wider market snapshot: circuit hits and Budget-linked volatility

The rout extended over multiple sessions, with one update noting silver ETFs sank up to 20% on the NSE and that Edelweiss Silver ETF was locked in the 20% lower circuit. Other silver ETFs such as Kotak, DSP, Axis, Aditya Birla Sun Life and Groww were cited as dropping in the range of 18.5% to 19.9% in that session, while several others declined between 16% and 18%. Around Union Budget 2026, another update reported gold and silver ETFs falling sharply in Sunday’s trade, with silver ETFs down close to 20% in some counters and gold ETFs down up to 12%.

A separate Hindi-language update also reported March expiry silver futures down 6% to 2,49,713 rupees per kilogram, and said this was about 41% below the record high of 4,20,048 rupees. It also cited May expiry silver futures down करीब 6% to 2,65,502 rupees.

Key figures table: selected ETF and price moves

What it means for ETF investors

Across the sessions described, silver-linked ETFs showed sharper percentage moves than gold ETFs, mirroring the steeper corrections in silver prices. Lower circuits and large intraday gaps also created execution risks for ETF traders. One advisory in the coverage warned investors to avoid placing market orders during circuit hits because orders may not execute or could execute at an unfavourable price when the circuit resets. The same guidance suggested using limit orders and waiting to see whether buyers emerge later in the session.

Another risk flagged was leverage. Investors using leverage to trade in silver were advised to square off or close positions given the sharp drawdown in prices. For long-term holders, the episodes underline that precious-metal ETFs can move abruptly when global macro cues, currency strength and commodity futures shifts align.

Conclusion

The reported sessions show a recurring theme in Indian precious metal ETFs: when volatility rises, silver ETFs tend to fall more sharply than gold ETFs. The declines ranged from mid-single digits to near 20% in some silver funds, with several instances of lower circuits. Future moves will likely continue to track MCX price action and global triggers such as U.S. rates expectations and currency strength, with event-driven periods like Budget week often amplifying volatility.