Rising gold prices have triggered a remarkable surge in investment demand across India, with investors channeling nearly $10 billion into gold bars and coins in the September quarter, according to the World Gold Council (WGC). This trend has pushed investment’s share of total gold consumption in India to an unprecedented high.
Sachin Jain, CEO of WGC India, emphasized that gold is increasingly being recognized as a mainstream asset class. “Even people with limited prior exposure are now including gold in their portfolios. We anticipate this momentum will continue and expand in the coming quarters,” Jain noted.
The festive and wedding seasons played a significant role in lifting investor sentiment after a slow start to the year, during which jewellery demand remained subdued due to elevated prices. Notably, the surge in investment demand reflects a clear shift from ornamental purchases to investment-driven buying.
Globally, gold experienced a historic quarter as well, with total demand hitting 1,313 tonnes—the highest ever recorded. Investment demand alone accounted for 524 tonnes, highlighting a worldwide preference for gold as a secure asset amid economic uncertainty and market volatility.
In India, investment demand reached 91.6 tonnes, marking a 74.5% increase in value, amounting to roughly Rs 88,970 crore. This growth was fueled primarily by bullion, bars, coins, and an increasing share of exchange-traded funds (ETFs).
Jain noted that while jewellery consumption has softened internationally due to high prices, growing confidence in gold’s long-term value is reshaping the market. “This quarter has clearly marked a turning point — gold is no longer viewed merely as jewellery but as a crucial tool for wealth preservation,” he added.
With investment interest climbing steadily, industry analysts expect gold to maintain its status as a reliable hedge and a preferred asset for portfolio diversification in India and worldwide.
For more insights on global gold trends, visit the World Gold Council official site.