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Global Gold Demand Hits Record High as Investment Surges, Jewellery Wanes

Global gold demand reached a record high of approximately 5,000 metric tonnes in CY25, driven by a surge in investment demand. Jewellery consumption declined sharply, with its share falling to 33% globally, well below the long-term average of 50%. In India, the share of investment demand in total gold consumption rose to 42%, up from 29% in CY24. Central banks continued large-scale gold accumulation for the fourth consecutive year, supporting overall demand.

Key Points: Gold Demand Record High: Shift to Investment from Jewellery

  • Global gold demand hits record ~5,000 MT in CY25
  • Jewellery consumption share drops to 33% globally
  • Investment demand surges, led by ETFs and bars
  • India's investment share in gold rises to 42%
2 min read

Amid record gold buying globally and in India, consumption shifts to investment, jewellery demand declines

Global gold demand hits record high in CY25 as investment surges. Jewellery share falls to 33% globally. India sees similar shift with investment demand rising to 42%.

"Composition of gold consumption globally has undergone a structural shift with jewellery's share falling significantly....well below its long-term average... The trend is visible in Indian market as well - CaredEdge Ratings Report"

New Delhi, April 28

Global gold demand has reached a record high in CY25, driven by a sharp rise in investment demand even as jewellery consumption declined due to elevated prices, highlighted a report by CaredEdge Ratings.

According to the data shared in the report, total global gold demand rose by around 8 per cent year-on-year to approximately 5,000 metric tonnes (MT) in CY25, marking an all-time high despite macroeconomic challenges and higher prices.

A key trend observed during the year was a structural shift in the composition of gold consumption. The report mentioned that the share of jewellery in global demand dropped significantly to around 33 per cent in CY25, well below its long-term average of about 50 per cent, as consumers reduced discretionary purchases in response to rising prices.

It stated "Composition of gold consumption globally has undergone a structural shift with jewellery's share falling significantly....well below its long-term average... The trend is visible in Indian market as well"

The shift was also visible in India, where the share of jewellery consumption declined to below 60 per cent of total gold purchases in CY25, compared to a long-term average of around 70 per cent.

This indicates a clear change in consumer behaviour, with buyers becoming more cautious on discretionary spending.

At the same time, investment demand for gold surged to record levels globally as well as in India. Increased buying of gold exchange-traded funds (ETFs), along with bar and coin purchases, drove the growth, reflecting strong safe-haven demand amid geopolitical uncertainty and market volatility.

In India, the report added that the share of investment demand in total gold consumption rose sharply to 42 per cent in CY25, up from 29 per cent in CY24, highlighting a growing preference for gold as a financial asset rather than just for consumption.

Central banks also continued to play a significant role in supporting global demand. They maintained large-scale gold accumulation for the fourth consecutive year, underscoring gold's importance in reserve diversification, especially in the context of geopolitical challenges.

The report suggests that while overall gold demand remains strong, its composition is undergoing a notable shift, with investment demand increasingly driving the market as jewellery consumption declines.

- ANI

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Reader Comments

P
Priya S
I'm happy to see this shift. For too long, gold was only seen as jewellery for dowry or status. Now it's being treated as a serious investment asset. During these uncertain times, having gold in digital form makes sense. But I hope the jewellery industry innovates with lighter, modern designs to attract younger buyers.
J
James A
Interesting data from India. The shift from 70% jewellery share to 60% is significant. With gold at these levels, even my parents who traditionally buy gold every Diwali are considering ETFs. The global geopolitical tensions and inflation fears are driving this investment demand everywhere.
S
Siddharth J
The report's point about central banks hoarding gold for the 4th consecutive year says a lot about the global economy. India's RBI has been smart in diversifying reserves. On the retail side, the jump from 29% to 42% in investment demand in just one year is amazing. Gold is becoming a real asset class for the younger generation.
V
Vikram M
It's a double-edged sword for India. Jewellery exports and the traditional karigars (craftsmen) will take a hit. We need to balance this shift with skill development and helping the small-scale jewellery sector adapt. Digital gold is great for the rich and urban, but what about the rural customer who still prefers physical gold? The government must ensure the transition is inclusive.
M
Michael C
As someone who tracks precious metals, this structural shift in India is fascinating. Historically, Indian households held almost a quarter of the world's gold in jewellery form. Seeing investment demand rise to 42% suggests a

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