Investors in India have started booking profits in silver after a sharp rally in prices over the past few months. In February 2026, Silver Exchange Traded Funds (ETFs) recorded their first net outflow in 27 months, signaling a shift in investor sentiment after a long period of steady inflows.

The withdrawal from silver ETFs comes at a time when silver prices have surged significantly, encouraging investors to lock in gains. At the same time, the pace of investment in Gold ETFs has also slowed considerably during the same period.

Silver ETF Records Net Outflow in February

According to recent market data, Silver ETFs in India saw total inflows of ₹4,628 crore in February, while redemptions stood at ₹5,455 crore. This resulted in a net outflow of ₹826.3 crore for the month.

This marks the first instance of net withdrawal from silver ETFs since November 2023. The shift contrasts sharply with the strong inflows recorded earlier this year. In January 2026, silver ETFs had attracted net investments of ₹9,463.40 crore, reflecting strong investor enthusiasm.

Market experts attribute the recent outflow largely to profit booking after the rapid rise in silver prices and increased volatility in commodity markets.

Silver Prices Have Rallied Sharply

Silver prices have witnessed a remarkable rally over the past several months, prompting investors to reconsider their positions.

• In February, silver prices increased by nearly 10%.




• In January, the metal surged by around 19%.




• Since the beginning of 2026, silver prices have risen by nearly 20%.

The rally was even stronger in the previous months. In December 2025, silver prices jumped about 27%, while November 2025 saw a rise of nearly 16%.

Looking at the broader trend, silver prices recorded an extraordinary surge of around 148% during 2025, compared with a gain of about 22% in 2024.

Such strong gains have encouraged many investors to book profits and rebalance their portfolios.

Profit Booking After a Strong Rally

Investment interest in silver ETFs has grown rapidly in India over the past few years. Rising awareness among retail investors and the convenience of ETF investments have contributed to this trend.

In 2025, investors poured approximately ₹23,472 crore into silver ETFs, a significant jump compared with ₹8,568 crore invested in 2024.

However, experts believe the sharp price rally in 2025 prompted many investors to lock in profits once prices reached higher levels. As a result, some investors decided to withdraw funds from silver ETFs in February.

Market analysts also suggest that silver prices may enter a consolidation phase in the near term, where prices stabilize after a strong rally. In the medium term, however, the metal could see further upward momentum depending on global economic conditions and industrial demand.

Another reason behind the withdrawals is that some investors have shifted funds from precious metals to the equity market, which appears relatively attractive at current valuations.

Investment in Gold ETFs Also Slows

The trend of cautious investing was not limited to silver. Gold ETFs also witnessed a slowdown in investment inflows during February.

Investors invested around ₹5,255 crore in Gold ETFs during February, significantly lower than the ₹24,039.96 crore recorded in January 2026.

This decline suggests that investors are currently taking a more balanced approach toward precious metal investments after a period of strong price growth.

SEBI Updates Valuation Rules for Gold and Silver

Another notable development in the precious metals market came from the Securities and Exchange Board of India (SEBI), which introduced changes in valuation rules for physical gold and silver held by mutual fund schemes.

Under the new guidelines, mutual funds will now value physical gold and silver based on spot prices published by domestic stock exchanges.

Previously, valuation was based on prices fixed by the London Bullion Market Association (LBMA), adjusted for currency exchange rates, import duties, and other local costs.

The new valuation approach is expected to increase transparency and align domestic pricing with local market conditions.

Investor Advisory

While precious metals such as gold and silver remain popular investment options, market experts emphasize that commodity investments are subject to market risks and price fluctuations.

Investors should carefully evaluate market conditions and consult financial advisors before making investment decisions. Diversifying across asset classes and maintaining a long-term perspective can help manage risk more effectively in volatile markets.