India’s Gold Investment Demand Tops $10 Billion in Q2, Says WGC

India’s gold investment demand surged in the September quarter as rising prices and diversification trends drove record purchases of bars and coins, according to the World Gold Council (WGC).

The WGC reported that investment demand in the world’s second-largest gold consumer rose 20% year on year to 91.6 metric tonnes, or 67% in value terms to $10.2 billion. This lifted investment’s share of total gold consumption to an all-time high of 40% for the first nine months of 2025.

“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 India. “We believe investors’ interest in gold will continue and grow in the coming quarters.”

Despite strong investment demand, total gold consumption fell 16% to 209.4 tonnes as jewellery demand declined 31% to 117.7 tonnes amid record-high domestic prices. Local gold prices hit a historic ₹1,32,294 per 10 grams earlier this month, up 56% so far in 2025 following a 21% rise last year.

Gold exchange-traded funds (ETFs) also benefited from the rally, attracting record monthly inflows of ₹8,363 crore in September, according to data from the Association of Mutual Funds in India (AMFI).

Looking ahead, the WGC expects demand in the December quarter to exceed that of the September period, supported by India’s festive and wedding seasons. However, total annual demand in 2025 is projected to range between 600 and 700 tonnes — the lowest since 2020 and down from 802.8 tonnes in 2024.