A shortage of silver, which soared to a record $51.30 an ounce on Thursday, across the world has pushed up the premium for the precious metal exchange-traded funds (ETFs) in India by 12-14 per cent, industry experts said.

As a result, Kotak suspended subscription to its ETF Fund of Fund scheme (FoFS). Adding to consumer woes, traders are charging a premium of ₹14,000 a kg — up from ₹4,000 earlier this week.

“Bullion dealers are facing a shortage of silver and they are unable to match supply with the demand. For ETFs, the supply comes from the market makers or bullion dealers, who themselves are facing shortage,” said Satish Dondapati, Fund Manager, Kotak.

Lease rate soar

According to traders, the jump in rates of silver lease — under which silver manufacturers take the precious metal f

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