Silver ETFs Hit Record Highs: Is This Rally Sustainable Or A Crash Waiting?

Metals are emerging as the only clear bright spot in an otherwise muted market, with silver leading the charge and silver ETFs hitting record highs. Stocks like Hindalco and a host of other metal counters are seeing strong buying interest, while the Nippon Silver ETF has surged over 4.5%, signalling relentless momentum and renewed investor focus on the precious metal space. However, the sharp rise in silver is also raising questions around sustainability. While safe-haven demand and investment flows continue to support prices, silver has historically been one of the most volatile commodities, known for sharp rallies followed by equally steep corrections. Experts Sharad Avasthi, Head of Research (PCG), SMIFS point out that such spikes tend to occur once every 15–20 years, often driven by speculation, supply narratives and evolving market stories. With silver having already delivered a multi-fold move in this cycle, the debate now centres on whether there is more upside left or if the risk of a sudden crash is rising. In this video, we analyse the drivers behind the silver rally, the role of speculation, and whether investors should chase momentum or exercise caution at record-high levels.