Silver Alert! Why Silver ETFs Are Crashing & Should You Buy? Top 10 Silver ETFs With 180% Returns In 1-Yr

Silver exchange traded funds (ETFs) continued to fall as silver rates in India extend its correction to below Rs 2.4 lakh. On February 6, MCX silver crashed to below Rs 2.37 lakh. This trend was witnessed in top silver ETFs like Tata Silver ETF, Nippon India Silver ETF, Zerodha Silver ETF, ICICI Prudential Silver ETF and others which recorded a decline of up to 6% in a single-day. Despite the latest bearish trend, silver ETFs have emerged as multibaggers on year-on-year basis, giving returns up to 180%.

Does the latest fall means buy-on-dips strategy in silver ETFs? What should investors do?

MCX Silver Price:

MCX silver which is scheduled to expire on February 27, dropped by 6% to hit an intraday low of Rs 2,36,853 per 1Kg. At the time of writing, silver continued to be under pressure and traded at Rs 2,46,725 per 1Kg, down by Rs 5,246 or 2.08%. That being said, silver has recovered some losses.

Still, silver rate in India is down by 42.2% from its peak of Rs 4,26,992 per 1Kg which was touched last week before January month could end.

Why silver prices are falling? As per Akshat Garg, Head - Research & Product of Choice Wealth, silver has come off mainly because it had run up too fast in a short period. Over the past year, prices had moved sharply higher and a lot of optimistic positioning had already been built in. When markets are stretched like that, even small changes in global cues can trigger a correction.

Further, Garg explained that right now a slightly stronger dollar and some cooling in global risk appetite are prompting investors to cut exposure to volatile assets. Silver, by nature, reacts more sharply than gold. It is a smaller and thinner market, so when selling starts, the fall looks steeper.

Following this, silver ETFs also crashed significantly.

Silver ETFs On February 6, 2026:

Data from Groww revealed that Tata Silver Exhange Traded Fund dropped by 5.02% to trade at Rs 22.88, while Nippon India Silver ETF plunged by 5.4%, Zerodha Silver ETF dipped by 6.04%, ICICI Prudential Silver ETF slipped by 5.53%, and HDFC Silver ETF declined by nearly 6%.

In the previous session, Silver ETFs dropped by at least 21%.

Why Silver ETFs Are Falling?

According to the mentioned expert, Silver ETFs feel the impact immediately because they track spot prices closely. During such phases, short-term selling and lower liquidity can make ETF prices look even weaker. This is more about price adjustment and profit-booking than any sudden deterioration in silver's fundamentals.

Top Silver ETFs:

Here are some of the top ETFs in 2026 so far:

ICICI Prudential Silver ETF:

This silver ETF has surged by nearly 179% in a year despite the latest fall.
Current trading price is of Rs 234.46 apiece.

2. DSP Silver ETF:

Trading at Rs 226.568 apiece as of February 6, 2026, this silver ETF has also given nearly 189% returns in a year.

3. Aditya Birla Sun Life Silver ETF:

Backed by Aditya Birla Group, this silver ETF has surged by a whopping 178.32% in a year. Currently, it trades at Rs 234.04 apiece.

4. UTI Silver ETF:

UTI silver ETF is part of UTI Mutual Fund who is majorly backed by large PSUs like State Bank of India, Punjab National Bank and Bank of Baroda. UTI Silver ETF has soared by a whopping 178.3% as of now. Its current market price is of Rs 226.49 apiece.

5. Kotak Silver ETF:

Part of Kotak Mahindra Mutual Fund, this silver ETF has given 178.14% returns so far in a year, while it trades at an affordable price of Rs 227.45 apiece.

These top silver ETFs are open-ended scheme with an investment objective of generating returns that are in line with the performance of physical silver in domestic prices, subject to tracking error.

What Should Investors Do?

In Garg's opinion, there's no need for panic. Silver is a volatile asset and sharp ups and downs are part of the journey. One correction does not change the long-term relevance of silver, but it does remind investors why position sizing matters.

Explaining in detail, the analyst said, investors should avoid chasing prices or reacting to day-to-day moves. Silver works best as a small, supporting allocation in a portfolio, not as a core holding. If someone wants exposure, staggered buying is a far more sensible approach than lump-sum investing, especially in a volatile phase like this.

Accordingly, for short-term traders, risk management is key. For long-term investors, this phase is about patience and discipline rather than action. The current fall is driven more by market positioning and global macro adjustments, not by a breakdown in the silver story.

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