27 April,2026 06:14 PM IST | Mumbai | mid-day online correspondent
Gold ETFs and bars drive new investment boom in India. File Pic
A research-based report shows a major change in how Indians are buying gold. More people are now purchasing gold for investment purposes instead of jewellery.
The report released by by CareEdge Ratings says that the share of jewellery in total gold purchases fell below 60 per cent in 2025, compared to the long-term average of around 70 per cent.
At the same time, investment demand has increased sharply.
Akhil Goyal, Director, CareEdge Ratings, called this a "structural shift" in India's gold consumption pattern. He said, "Geopolitical uncertainty, momentum in gold prices and portfolio diversification preferences are expected to continue fuelling investment demand for gold," reported PTI.
Investment demand in India has surged to record highs, driven mainly by gold exchange-traded funds (ETFs), bars, and coins.
The share of investment in total gold consumption rose to 42 per cent in CY25, up from 29 per cent in CY24. The report expects this to stay strong, with investment share projected to reach 35-40 per cent by FY27, reported ANI.
Gold ETFs alone saw strong inflows, reflecting growing interest in safer financial assets during uncertain global conditions.
Even though investment demand is rising, jewellery consumption in India has not collapsed. It still accounts for about 60 per cent of total gold purchases, which is higher than the global average of 50 per cent.
In value terms, jewellery demand increased 10 per cent to around Rs 4.8 lakh crore in 2025. However, the volume of jewellery sold fell by 15 per cent, as buyers preferred lighter and lower-carat designs due to high prices, reported the news agencies.
Globally, gold demand reached nearly 5,000 metric tonnes in CY25, an 8 per cent increase year-on-year. Investment demand was the main driver of this growth.
Gold ETFs worldwide contributed over 800 metric tonnes, while total global investment demand reached 2,175 metric tonnes, higher than previous record levels.
The report notes that gold prices are now in a "high-price regime" supported by long-term structural factors. These include central bank buying, geopolitical tensions and global economic uncertainty.
Organised jewellers are expected to benefit from this changing trend. Their revenues are projected to grow around 35 per cent in FY26 and 20-25 per cent in FY27, supported by expansion and formalisation in the sector, reported ANI.
However, profit margins may fluctuate due to price movements and higher operating costs from new store openings.
(With PTI and ANI Inputs)
