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Gold Investment Soars in India & Globally
27 Apr
Summary
- Investment share of gold consumption rose to 42% in India in CY2025.
- Global gold investment demand hit a record 2,175 metric tonnes in CY2025.
- Jewelry's share of gold demand declined globally to 33% in CY2025.
Investment in gold saw a significant increase in India and across the globe during CY2025. In India, gold investment's share of total consumption rose to 42%, up from 29% in CY2024, driven by gold ETFs and bar-and-coin demand. Globally, investment demand surged to a record 2,175 metric tonnes, with ETFs accounting for over 800 metric tonnes.
The overall demand for gold globally increased by approximately 8% year-on-year in CY2025, reaching nearly 5,000 metric tonnes. However, the composition of this demand shifted, with jewelry's share falling to 33% globally and less than 60% in India, a decrease from long-term averages. This change is attributed to elevated gold prices affecting discretionary spending.
CareEdge Ratings forecasts that the investment share in overall gold consumption will remain elevated, between 35-40% by FY2027. Gold prices have entered a structurally higher range, supported by central bank purchases and macroeconomic uncertainty. Despite record prices, Indian jewelry demand remained resilient in value, though volumes decreased, indicating a shift towards lighter-weight items.
