Gold, silver ETF assets surge 200% since August, cross ₹3T
What's the story
The combined assets under management (AUM) of gold and silver exchange-traded funds (ETFs) have hit a new high of over ₹3 lakh crore in January 2026. The figure has nearly tripled in just five months, driven by record inflows despite the volatility of precious metal prices. According to data from the Association of Mutual Funds in India (AMFI), the combined AUM was around ₹1 lakh crore in August 2025.
Market response
Record folio numbers for gold and silver ETFs
The sharp rise in assets was mirrored by a surge in investor participation. Gold ETF folios jumped from 80.34 lakh to 1.14 crore, while silver ETF folios skyrocketed from 11.31 lakh to an astonishing 47.85 lakh during the same period. This marks a growth of 43% for gold and a whopping 323% for silver ETFs, according to AMFI data.
Inflow impact
Gold, silver ETFs attract more inflows than equities in January
The asset growth was also driven by record inflows in January 2026. Gold ETFs saw inflows of over ₹24,039 crore during the month, while silver ETFs attracted ₹9,463 crore. These inflows surpassed equity fund inflows of ₹24,029 crore for the same period. In December 2025 alone, combined inflows into gold and silver ETFs were at ₹15,609 crore against equity funds' ₹28,055 crore—marking a second consecutive month of moderation in equity flows.
Expert opinion
'Precious metals don't always mean equity market correction'
Ajay Garg, CEO of SMC Global Securities, has said that the surge in gold and silver inflows shouldn't be seen as a precursor to an equity market correction. He explained that while equity mutual fund inflows have moderated, investors are reallocating some of their investments toward defensive assets amid volatility and macro uncertainty. For long-term investors, Garg recommends a disciplined allocation of 10-15% in gold/silver to avoid excessive risk concentration in one asset class.
Investment strategy
Garg recommends staggered allocation through SIPs or phased ETF investments
Garg also advised staggered allocation through systematic investment plans or phased ETF investments instead of lump-sum buying at high levels. He believes that as global trade uncertainties ease and foreign flows gradually return, Indian equities could stabilize. A balanced portfolio of equities and precious metals would be a prudent approach in such a scenario.
Gold demand
Strong demand for gold driven by policy uncertainties
The surge in inflows indicates a strong demand for gold, driven by policy uncertainties, a relatively weaker dollar, and uncertainty over the future course of US Federal Reserve policy. Domestically, uncertainty over the India-US trade equation and persistent foreign investor outflows led to higher allocations toward gold ETFs as a defensive strategy during January. Silver ETFs also witnessed strong investor participation due to last year's sharp rally in silver prices and fund performance.