Some ETF’s including zerodha SILVERCASE, Icici prudential SILVERIETF are trading at a discount to i-NAV and some like TATA SILVER ETF are trading at a premium? Arent the market makers supposed to intervene to bring the price close to the i-NAV?
Feature Request: Can zerodha show the i-NAV in the market depth or the order window so that people can make an informed choice?
For ETF investors:
Pls note that you can check the i-NAV of most ETF on this page only after clicking on a particular security. Exchange Traded Fund (ETF's) - NSE India
Second link you shared does have iNAV which appears real-time.
About original question:
Yes, market making in Silver is broken for past few days. Main reason being there is scarcity of physical silver in market and physical silver is quoting at crazy prices.
Hence market makers are unable to get hold of silver and use it to create additional units and make market.
So for all practical purpose there is no (or very limited) market making is happening in silver.
I don’t know about the valuation/calculation derived to provide the iNAV. But INR did sharply appreciate against the USD yesterday. Maybe iNAV calculation by AMCs use old rates? Or maybe silver is expected to depreciate? Or people are just selling commodities to get to equity. Nifty is rising. Isn’t it? Maybe @VishalJain can shed some light.
Currency depreciation or any other macro or micro factor would affect the i-NAV. I’m talking about the difference between the LTP and the i-NAV. Currently the gap is 5% for SILVERCASE and more for others.
