Kotak Mutual Fund has temporarily halted lump sum and switch-in subscriptions in Kotak Silver ETF Fund of Fund, due to the difference in premiums charged in the domestic market compared to international prices.

Global silver markets have experienced a sustained demand-supply deficit over recent years, driving prices upward. The premium on domestic silver prices over international markets rose to 5.70 per cent on Friday from 0.51 per cent on September 4.

On Thursday, the silver premium has suddenly jumped to 5.70 per cent from 3.41 per cent logged on Wednesday.

If invested at a premium, investors must wait until the silver price rises to the level of the premium before realising any profit.

The domestic silver is currently trading at a significant premium compared to international price

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