In a significant move reflecting the current market dynamics, Kotak Mahindra Asset Management Company (AMC) has decided to suspend new lumpsum investments and switch-ins into its Kotak Silver ETF Fund of Fund until at least October 10, 2025. This decision is primarily driven by a shortage of physical silver in the domestic market, as The source reports that the demand for silver has outpaced supply significantly.
Challenges in the Silver Market
The suspension highlights the growing challenges in the silver market, where premiums have surged well above benchmark prices, making it difficult for investors to engage with silver ETFs.
Shift to Gold ETFs
As a result, many investors are now turning their attention to gold ETFs, which are perceived as a more stable investment option during these uncertain times. This shift in focus is likely to reshape the investment landscape.
Adapting to Evolving Conditions
Market participants are adapting to the evolving conditions in precious metals.
In a contrasting development within the cryptocurrency sector, Polychain Capital recently deposited 411 million PENDLE tokens to the FalconX exchange, raising questions about market dynamics. For more details, see read more.
