Supply crisis on silver deepens, prices are rising…these companies stopped investing in Silver ETF

price of silver

Rising silver prices in the country have also increased the concern of fund managers. Due to lack of supply, silver prices are increasing. UTI Asset Management Company said on Saturday that new lump-sum and switch-in investments in UTI Silver ETF Fund of Funds have been temporarily stopped from October 13, 2025. The company said that this decision has been taken due to the market situation and shortage of physical silver in the country. Silver prices are at a premium compared to the international market, which is impacting the valuation of the fund.

This is the second time this week that new investments in silver-based funds have been stopped. Earlier, Kotak Mahindra Asset Management had also banned new investments in its silver ETF fund. Kotak said that this ban will be lifted when the supply improves after Diwali. On Thursday, spot silver set a new record of $51.22 an ounce, reaching above $51 for the first time. In India, the rate of silver in Delhi on Saturday became Rs 1,74,000 per kg, which is Rs 7,000 more than Friday.

Why are prices increasing?

In India, the world’s largest silver consumer, demand for silver has increased due to the festive season, while supply is low. On Thursday, the premium of silver increased by 10%. According to bullion dealers, people are buying silver for festivals. Prices are also increasing due to jewelery and industrial demand of 60-70%.

More investment is being made in silver

According to experts, the gold-silver ratio has fallen to 78.80, which shows that investors are getting attracted towards silver. Some people are buying silver by selling gold or using house construction funds. Kedia has described it as exciting but risky. According to experts, the prospects of silver are good in the long term but avoid emotional buying at the current high prices. Meaning it is a festival, something has to be taken, avoid all this a little. The stability of silver prices will depend on industrial demand, ETF investments and global policies.

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