Although not as bad as the recent declines seen by their gold counterparts, the iShares Silver Trust (NYSEArca: SLV) and ETFS Physical Silver Shares (NYSEArca: SIVR) are each off more than 9% over the past month.

Silver ETFs have recently been sliding as some market participants started pricing in a rate hike from the Federal Reserve later this year and its potential impact on precious metals.

Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction. The metal also maintained its momentum as the Federal Reserve lowered its interest rate outlook to only one or two hikes this year from a previously expected four rate hikes.

However, some silver market observers see the potential for some upside for the white metal courtesy of an interesting party: India, a country known in precious metals circles for its voracious appetite for gold.

“If the Indian government decides to crack down on gold holdings — as some believe they will — silver could begin to take gold’s place. In fact, a trend toward silver has already begun taking hold,” reports ETF Daily News.

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