The year 2025 witnessed a historic bull run for silver, with the precious metal delivering phenomenal returns that captured the attention of investors across India. The price of silver surged by an astonishing more than 150% in just the last year. Starting the year around ₹81,000 per kilogram, the white metal's value climbed consistently, closing 2025 at approximately ₹2,06,000 per kg. This explosive growth has continued into the start of 2026, with the market seeing strong sustained buying interest. Given these impressive returns, a growing number of Indian investors are now actively exploring avenues to add silver to their portfolios.
Top 5 Ways to Invest in Silver in India
For investors looking to capitalise on the potential of silver in 2026, several accessible options are available. The choice depends on your investment style, risk appetite, and financial goals.
1. Silver Exchange Traded Funds (ETFs)
Silver ETFs stand out as one of the most straightforward and popular methods to gain exposure to silver prices. These funds track the price of physical silver and are traded on stock exchanges like shares. To invest, you need a trading and demat account. Units are bought and sold during market hours, with the transaction amount debited or credited to your linked account. A key consideration is that ETF unit prices can trade at a premium or discount to the Net Asset Value (NAV), and liquidity can vary. Leading Silver ETFs in India include:
- Nippon India Silver ETF
- ICICI Prudential Silver ETF
- HDFC Silver ETF
- SBI Silver ETF
- Kotak Silver ETF
- Aditya Birla Sun Life Silver ETF
- Axis Silver ETF
- Zerodha Silver ETF
2. Silver Mutual Funds (ETF Fund of Funds)
If you prefer a disciplined, hands-off approach, Silver Mutual Funds, or Silver ETF Fund of Funds (FoFs), are ideal. These funds pool money to invest in Silver ETF units. Their standout feature is the availability of a Systematic Investment Plan (SIP), allowing you to invest a fixed sum monthly. Transactions occur at the fund's NAV, eliminating concerns about market premiums or liquidity during purchase. Notable schemes include ICICI Prudential Silver ETF FoF, Nippon India Silver ETF FOF, and HDFC Silver ETF Fund of Funds.
3. Physical Silver
Investing directly in physical silver—coins, biscuits, bars, jewellery, or utensils—is a traditional route. However, this method involves additional costs like making charges, secure storage, and insurance against theft or damage. For long-term wealth appreciation rather than personal use, financial instruments like ETFs or mutual funds are generally more efficient and cost-effective.
4. Digital Silver
A modern and convenient option, digital silver allows you to buy silver electronically in small amounts. Platforms like MMTC PAMP, Augmont, and DigiGold purchase and store physical silver on your behalf in secure vaults. With minimum investments as low as ₹100, it's highly accessible. Holdings are managed via an online dashboard, and selling is typically quick with no lock-in period.
5. Silver Futures
Traded on exchanges like the Multi Commodity Exchange (MCX), silver futures are high-risk, leveraged products suited for experienced traders. They require a small initial margin for large exposure, meaning volatile price swings can lead to significant profits or losses. Due to this inherent risk, retail investors often prefer the other, more stable methods listed above.
Choosing the Right Silver Investment for You
Your optimal investment vehicle depends on multiple factors. Active investors may favour Silver ETFs for direct control, while those building wealth gradually may opt for Silver Mutual Fund SIPs. If you desire utility alongside investment, physical silver is an option. Crucially, consider all associated costs—demat charges, brokerage, expense ratios, making charges, and storage fees—as well as the tax implications on capital gains. Given the metal's recent volatility, consulting with a certified financial advisor before investing is highly recommended.
