Gold Boom: Investment demand surges despite high prices; what World Gold Council said

New Delhi: The World Gold Council (WGC) on Thursday said that increasing gold prices are motivating Indian investors to buy gold bars and coins. In September quarter for FY26, gold purchase of $10 billion was recorded. Gold's share in total consumption has reached the highest level ever. Sachin Jain, CEO of WGC's India operations, said that due to investors bringing diversity to the portfolio and increasing investment, gold has become a mainstream asset, even among those who had low investment earlier.

Jain said that we believe that investors' interest in gold will remain and it will grow in the coming quarters. The World Gold Council (WGC) said that investment demand in the world's second-largest gold consumer country increased by 20% on an annual basis to 91.6 metric tonnes in the September quarter, which means 67% by value to $10.2 billion. However, the total gold consumption fell by 16% to 209.4 tonnes, whereas due to record high prices, the jewellery demand fell by 31% to 117.7 tonnes.

Also Read

Gold ETF: No storage risk, only returns as the metal reaches for the moon

Buying gold jewellery: Take a purity check for just Rs 45; also use this BIS app

Digital Gold investment: Gold ETF vs. Mutual Fund - Which is Better?

Local gold prices reached a record Rs 132,294 per 10 grams at the beginning of June. After a growth of 21% last year, it has increased by 56% so far in 2025. The WGC said that investment in total gold consumption accounted for 40% of demand in the first nine months of 2025, which is the highest on record. Jain said that physical backed gold exchange-traded funds are also catching momentum amidst the rally.

"This highlights a deepening strategic commitment among Indian consumers to gold as a long-term store of value," Sachin Jain said.

The average gold price in India jumped to Rs 97,074.9 per 10 grams during the quarter, up 46 per cent from Rs 66,614.1 a year earlier, excluding import duty and GST. International prices averaged USD 3,456.5 per ounce, compared with USD 2,474.3 in the year-ago period.

Despite the volume decline, Jain is hopeful of gold continuing to ibe in high demand during the festive and wedding season, citing early signs from retailers and strong sales in October during Diwali.

"There is a 16 per cent drop in volume but there is a 23 per cent historic rise in value. We cannot ignore that," Jain told PTI. "Indian consumers are catching up with the rise in per capita income and disposable income,” he added.

Data compiled by the Association of Mutual Funds in India (AMFI) revealed that gold ETFs made a record monthly inflow of 83.63 billion rupees in September. Jain said that the demand in the December quarter is expected to be higher than the September quarter, which will be supported by the festivals and wedding season. However, despite this seasonal recovery, the total gold demand in 2025 could be between 600 and 700 metric tonnes.