KEY TAKEAWAYS
- Silver ETFs saw outsized losses of 20–24% even as silver futures fell about 4%.
- Gold ETFs declined around 10–12%, much more than the $91 drop in spot gold.
- ETF discounts to NAV widened quickly as selling pressure surged.
ETF prices sank far faster than metal prices. Flow shocks created sharp discounts, changing short-term risk and reward.
A violent pullback hit gold and silver ETFs after a historic run.
Several silver ETFs dropped 20–24% in one session, while futures fell far less.
Gold ETFs slid about 10–12% as spot gold eased from $4,887.82 to $4,796.75.
The gap between ETF prices and metal prices widened fast and caught many investors off guard.
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How Big Was The ETF Sell-Off?
Some silver ETFs lost almost a quarter of their value in hours.
For instance, Tata Silver ETF dropped roughly 21–24% in the sell-off.
At the same time, silver futures dropped roughly 4%, a sharp but far smaller move.
Gold showed the same pattern. Several gold ETFs fell in the 10–12% range, while spot prices slipped less than 2%.
Birla Sun Life Gold ETF dropped about 12% in the recent correction.
This mismatch pushed many ETFs into deep discounts versus their net asset value, which added to the shock and volatility.
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Why ETFs Fell Faster Than Gold And Silver
This drop did not come from a sudden collapse in metal demand, It came from how ETFs trade.
ETFs react to investor flows first and metal prices second.
When traders rushed to lock in gains, ETF selling surged.
Liquidity thinned, spreads widened, and prices moved away from NAV.
A stronger dollar and calmer macro headlines also cooled speculative interest.
These forces turned a normal correction into an outsized ETF swing.
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Panic Or Opportunity? What To Check First
Before reacting, you should look at three data points.
First, check the ETF premium or discount to NAV and compare it with recent ranges.
Second, look at daily inflows and outflows to see if selling pressure is slowing.
Third, watch the gap between spot prices and futures.
If discounts narrow and flows stabilize, risk becomes more balanced. If not, volatility can persist.
Conclusion
The crash reflected fast money leaving crowded trades, not a breakdown in gold or silver.
Clear signals from NAV gaps and flows will decide what comes next.
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