Gold investment hits record $10 billion in India as prices surge: WGC
Mumbai: Rising gold prices have triggered record investment demand in India, with purchases of bars and coins worth $10.2 billion in the September quarter, the World Gold Council (WGC) reported on Thursday. The surge lifted the share of investment in total gold consumption to an all-time high.
“Gold has become a mainstream asset as investors diversify portfolios and boost allocations, even among those with little prior exposure,” said Sachin Jain, CEO of WGC’s India operations. He added, “We believe investors’ interest in gold will continue and grow in the coming quarters.”
Investment demand in India, the world’s second-largest gold consumer, jumped 20 per cent year-on-year in the September quarter to 91.6 metric tonnes, while the value rose 67 per cent to $10.2 billion. In contrast, total gold consumption declined 16 per cent to 209.4 tonnes as jewellery demand dropped 31 per cent to 117.7 tonnes, hit by record prices.
Domestic gold prices reached an unprecedented Rs 1,32,294 per 10 grams earlier this month, marking a 56 per cent rise so far in 2025 after a 21 per cent increase last year. Investment now accounts for 40 per cent of total gold consumption in the first nine months of 2025, the highest level ever recorded.
Gold exchange-traded funds have also benefited from the rally, drawing record monthly inflows of Rs 8,363 crore in September, according to data from the Association of Mutual Funds in India.
Jain said demand in the ecember quarter could surpass the previous quarter due to festivals and the wedding season, though overall 2025 demand is likely to fall to between 600 and 700 tonnes, the lowest since 2020.
