Rising gold prices are spurring Indian investors to buy bars and coins, with record purchases worth $10 billion in the September quarter lifting their share of total consumption to an all-time high, the World Gold Council said on Thursday.
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.
"We believe investors' interest in gold will continue and grow in the coming quarters," he said.
Investment demand in the world's second-largest gold consumer jumped 20% year on year in September quarter to 91.6 metric tons, or 67% in value terms to $10.2 billion, the WGC said.
Overall gold consumption, however, fell 16% to 209.4 tons as jewellery demand slumped 31% to 117.7 tons due to record-high prices.
Local gold prices, which hit a record Rs 1,32,294 per 10 grams earlier this month, have surged 56% so far in 2025 after a 21% rise last year.
Investment demand accounted for 40% of total gold consumption in the first nine months of 2025, the highest on record, the WGC said.
Physically backed gold exchange-traded funds are also gaining traction amid the rally, Jain added.
Gold ETFs drew record monthly inflows of Rs 8,363 crore in September, data compiled by the Association of Mutual Funds in India (AMFI) showed.
Demand in the December quarter is expected to exceed that of the September quarter, supported by festivals and the wedding season, said Jain.
However, despite this seasonal recovery, total gold demand in 2025 could range between 600 and 700 metric tons, the lowest since 2020, and down from last year's 802.8 tons, Jain said.
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