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India's UTI Asset Management stops new investments in Silver ETF

UTI Asset Management Company announced on Saturday that it has suspended new lump-sum investments and switch-ins into the UTI Silver ETF Fund of Fund until October 13, 2025.

Asset manager explained that this is due to the current market conditions, and the shortage of silver on the domestic market. The metal is trading at a premium compared to international prices.

The premium in domestic silver price directly impacts the value of the scheme.

UTI is now the second fund manager this week to limit new investments in silver-based funds. Kotak Mahindra Asset Management Company temporarily halted new investments in a Silver ETF Fund of Fund on Thursday.

Kotak has said that it will lift the restrictions in the next two weeks, as the supply increases after Diwali.

Silver spot reached a new record of $51.22 an ounce, topping the $51 level for the very first time.

Silver premiums over the official domestic price in India, which is the world's largest silver consumer, jumped up to 10% on Thursday due to strong demand for investment ahead of an important festival and limited supply, according bullion dealers. (Writing by Sai Ishwarbharath B in Bengaluru. (Editing by Jane Merriman).

(source: Reuters)