Silver ETFs recover up to 15% amid value buying: What should you do?

Silver exchange traded funds (ETFs) sharply recovered significant losses in morning trade on January 22, after crashing further earlier. This comes as investors may have bought the dip in the precious metals which earlier saw a record rally.

The ETFs are however still in deep red amid easing tariff concerns after US President Donald Trump withdrew a threat to impose tariffs on several nations for their stance on Greenland.

Recovery in silver ETFs:

Tata Silver Exchange Traded Fund, which has earlier crashed 21 percent in the morning, recovered around 10 percent to trade at Rs 28.09 apiece, as seen at 10.30 am. The ETF is still down around 17 percent.

Bandhan Silver ETF meanwhile recovered more than 13 percent from its intraday low to trade at Rs 285.99 apiece. Groww Silver ETF meanwhile recovered over 14 percent, and Nippon India Silver ETF (Silverbees) recovered 12 percent from its day’s low.

HDFC Silver ETF gained around 13 percent intraday, while Axis Silver ETF surged 15 percent from its day’s low. Motilal Oswal Silver ETF meanwhile gained more than 10 percent from its day’s low.

Gold ETFs also staged a partial recovery, with today’s top loser Birla Sun Life Gold ETF recovering around 6 percent from its day’s low.

Why are silver prices falling today?

Trump said that he had reached the outlines of a deal with NATO on the island’s future. “Based upon this understanding, I will not be imposing the tariffs that were scheduled to go into effect on February 1st,” Trump wrote on Truth Social after a meeting with NATO Secretary General Mark Rutte in Davos. He did not give details of the deal.

Additionally, he also said that US will not use military force to seize Greenland. “I won’t do that,” Trump said. “Okay? Now everyone’s saying ‘oh, good’ that’s probably the biggest statement I made because people thought I would use force. I don’t have to use force, I don’t want to use force, I won’t use force,” he added.

Earlier, gold and silver prices had sharply shot up earlier after Trump threatened to use military force to acquire Greenland, triggering tensions between US and EU nations. The tariff threats further fuelled the geopolitical tensions, and thereby safe-haven assets like gold and silver due to a rise in risk-off sentiment.

What should you do?

Despite price swings, fundamentals are compelling, driven by near-record industrial demand from solar panels, electric vehicles, and AI infrastructure, said Tanvi Kanchan, Associate Director, Anand Rathi Share and Stock Brokers.

The analyst however cautioned that after the record bull run, timing a single entry point is “treacherous”. “Rather than deploying capital all at once, investors should consider spreading purchases over the coming weeks or months. This approach captures the dip while protecting against further corrections that could see silver test,” she said.

“For conservative investors, allocating 5-10% of portfolios to precious metals ETFs through systematic purchases reduces timing risk while maintaining exposure to an asset class that benefits from geopolitical instability and monetary policy uncertainty. The structural deficits and industrial demand provide a floor, but expect continued volatility as the market digests 2025’s historic run,” she added.

Follow all LIVE updates from the stock markets.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.