Sell-offs in gold and silver ETFs continue as fear grips investor sentiment toward bullion metals

The gold and silver ETFs are witnessing historic swings as they continue to plunge in double digits for the second consecutive day. The Gold prices plunged nearly $1000 from the top in merely three trading sessions, while silver prices erased 40% of the gains from the top.

However, the gold and silver etfs have witnessed an even sharper fall in their returns in the past three sessions. The goldbees fell nearly 20% from the recent record high levels of ₹148 per unit to the intraday low of ₹112 on Monday morning, erasing the entire gain of January 2026.

Similarly, the silver ETFs too have witnessed a carnage in the past three trading sessions as the prominent silver ETFs like silverbees, axisilver and others witnessed nearly 40% drop from the record high levels touched in January.

Additionally, the gold and silver etf prices are now trading in steep discount to their NAVs as the recent brutal selloff in global gold and silver prices has shaken the confidence of many retail and short-term investors who looked to participate in the euphoric rally.

Gold ETFs and Silver ETFs became the easy-to-go investment avenue for those who wished to participate in the euphoric rally that started a year ago. Global investors remained cautious, but continued to remain optimistic about the gold and silver prices as the geopolitical and economic environment remains volatile.

The selloff in the precious metals was triggered by the appointment of new Federal Reserve Governor, Kevin Warsh, who is expected to be hawkish and focus more on reducing the Federal Reserve’s balance sheet.

Additionally, the euphoric rise in the metals prompted the exchanges in New York and London to increase the cash margin requirements by 30% to 35%. Which resulted in a mass liquidation of positions and the consequent fall.

Experts believe that the cooling off of the precious metals was a necessary step for its long-term bull run as structural factors of supply shortages in silver, fading value of the dollar remain intact.