Page 26 - Bullion World Volume 5 Issue 05 May 2025

Bullion World | Volume 5 | Issue 05 | May 2025

Silver as an Investment Asset – Mr Amit Sajeja:
Mr Amit Sajeja presented a comparative overview of silver investment
demand between 2015–2019 and 2020–2024. Globally, silver bar and
coin demand grew 21%, and ETF holdings jumped from 21 million to 56
million ounces. While global investment demand fell in 2023, India posted
a 21% increase. Indian silver ETF AUM grew from ₹3,700 crore in 2023 to
₹15,000 crore in 2024, and investor folios tripled.

Structured Strategies & Arbitrage – Mr Amit Sajeja:
He elaborated on how structured funds use price arbitrage in times of tariff
anomalies (e.g., India-UAE CEPA). Strategies include calendar spreads
and spot-future arbitrage, delivering 10%+ returns annually within SEBI’s
regulatory caps.
Mr Amit Sajeja
Alpha Alternatives Holdings Pvt Ltd

Shifting Correlations – Mr Navneet Damani:
Mr Navneet Damani highlighted how silver is increasingly correlated
with copper (85%) rather than gold, reflecting its industrial alignment,
especially in solar energy. He likened silver ETFs to digital equivalents of
traditional household silver hoarding. These holdings tend to re-emerge
only at price peaks.

Investor Trends & Forecasts – Mr Navneet Damani:
Retail is engaging more via small bar contracts (1–5 kg), and wealth
advisors now recommend 5–10% silver allocation. Institutional players are
also entering through structured products. Annual return expectations
remain in the 9–10% range.

Mr Navneet Damani
Motilal Oswal Financial Services Ltd

Rise of Silver ETFs – Mr Amit Vashisht:
Mr Amit Vashisht outlined the rapid growth of silver ETFs since 2022.
AUM has crossed ₹16,000 crore, with over half coming via ETF fund-of-
funds. SEBI’s mandate for full physical backing with insured inventory has
bolstered investor confidence. The ease of digital platforms has further
expanded access.

Mr Amit Vashisht
ICICI Prudential AMC Ltd

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