Naveen Mathur, Director of Commodities and Currencies at Anand Rathi, forecasts that SIL could benefit from sustained retail investor “fear of missing out” in India, where silver ETF holdings rose by 28% in the first nine months of 2025. He notes that daily average volumes in SIL jumped to 1.2 million shares in December, up from 820,000 in July, as small-ticket buyers piled into the fund following early-year gains in the white metal. Mathur advises investors to stagger purchases over the next 12 months rather than commit lump sums to manage volatility risks associated with seasonal demand spikes during India’s festival season.

Data from the Silver Institute indicate that industrial silver consumption climbed by 5.4% in 2025, driven by expanding photovoltaic and 5G infrastructure needs. This uptick has translated into a 15% rise in net asset inflows to SIL from commodity desks and corporate treasuries year to date. Mathur highlights that liquidity in SIL allows institutions to adjust exposures swiftly, noting that weekly creation units netted 3.7 million new shares over the past quarter, underpinning the ETF’s capacity to absorb additional capital without causing tracking error.

Despite robust demand fundamentals, SIL’s implied volatility spiked to its highest level since mid-2023 after a two-day correction in December. Mathur recommends using cost-averaging or laddered entry strategies, suggesting investors allocate no more than 20% of their target exposure in any single tranche. He also points out that options-based overlay strategies on SIL could cap potential drawdowns in the event of metal-specific profit-taking or broader market sell-offs, a consideration underscored by a recent one-week, 8% price reversal in silver futures during November.