Silver ETFs Trade at Wild Premiums and Discounts as Prices Experience Sharp Volatility
Silver ETFs in India trade at significant premiums or discounts to underlying prices due to supply-demand imbalances and domestic market dynamics. On January 22, DSP Mutual Fund's Silver ETF traded at Rs 279.00 per unit with an iNAV of Rs 287.48, showing a discount to intrinsic value. During high demand periods, premiums range from 5-12 percent across bullion ETFs, while pricing mechanisms tied to MCX futures create additional volatility during market transitions.
Silver ETFs in India trade at significant premiums or discounts to underlying prices due to supply-demand imbalances and domestic market dynamics. On January 22, DSP Mutual Fund's Silver ETF traded at Rs 279.00 per unit with an iNAV of Rs 287.48, showing a discount to intrinsic value. During high demand periods, premiums range from 5-12 percent across bullion ETFs, while pricing mechanisms tied to MCX futures create additional volatility during market transitions.
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