Gold ETF Inflows Drop 22 Percent in October While Silver Funds Surge

According to AMFI data, gold exchange-traded funds registered inflows of ₹3,474 crore in October, marking a 22 percent decline compared to previous periods amid an ongoing price correction. At the same time, silver exchange-traded funds recorded a 56 percent jump in new investor allocations during the month. This divergence highlights shifting capital preferences among retail mutual fund participants. Exchange-traded funds pool money from multiple investors to purchase underlying physical commodities, trading on stock exchanges just like regular equities.

When commodity prices correct, gold funds often see reduced net buying as investors pause deployments, whereas alternative precious metals like silver may attract higher speculative interest due to industrial demand narratives and perceived value. Fund distributors and investors should review their asset allocation strategies between gold and silver schemes based on these evolving AMFI liquidity flows. Monitor subsequent monthly association reports and commodity market trends to evaluate whether this divergence in precious metal fund inflows persists.

Bottom line: changing investor preferences across bullion funds require careful rebalancing of your commodity portfolio.