Silver ETF Sell-off: Leveraged Positions Soar 5x, Market Mayhem Feared

• Leveraged positions in Silver ETFs have increased fivefold since December 1, according to NSE disclosures.
• Nippon AMC Silver ETF holds the highest leveraged positions, valued at ₹1,178 crore as of January 20.
• Silver ETFs experienced a sharp 18-20% sell-off on January 22, despite stable global spot prices.
• Risk-on sentiment improved after Trump's statements on Greenland and European tariffs, but concerns remain.
• Zerodha's Nithin Kamath warns of potential 'mayhem' from synchronized liquidations of leveraged bets during a market correction.

Why It Matters: Leveraged Silver ETF positions have surged, raising concerns about market stability and potential liquidations.