India’s appetite for gold as an investment asset has reached new heights, with total bar and coin purchases touching an unprecedented $10 billion in the September quarter, according to data from the World Gold Council (WGC). This represents a 20% year-on-year increase, amounting to 91.6 tonnes and accounting for 40% of total gold consumption, the highest share ever recorded.
The surge underscores a growing trend among Indian investors, who are increasingly viewing gold as a safe and reliable investment amid volatile global markets. “We expect investor confidence in gold to stay strong and even expand in the coming quarters,” said Sachin Jain, Regional CEO (India) at WGC.
Despite robust investment interest, overall gold consumption in India declined 16% to 209.4 tonnes, largely due to a sharp 31% drop in jewelry demand, which fell to 117.7 tonnes. The slump was driven by soaring domestic prices that recently hit $1,491 per 10 grams, reflecting a 56% surge in 2025 after a 21% rise the previous year.
Investment demand was also buoyed by the strong performance of Gold Exchange-Traded Funds (ETFs), which attracted record inflows of $943 million in September, according to the Association of Mutual Funds in India (AMFI).
Looking ahead, the WGC anticipates that festive and wedding season demand will provide a temporary boost to sales in the December quarter. However, total gold demand for 2025 is projected to settle between 600 and 700 tonnes, potentially marking the lowest annual level since 2020.
The record-breaking investment demand signals a significant shift in Indian consumer behavior—away from ornamental purchases and toward gold’s role as a financial hedge and long-term store of value.
