Now most Indians are buying gold for investment purposes rather than jewellery, and the share of such customers is expected to increase to 40 percent in the current financial year. Domestic rating agency CareEdge said in a report that the share of jewelery consumption in 2025 fell below 60 per cent of total gold purchases, while its long-term average was 70 per cent. Its director Akhil Goyal said this marks a “big change” in the way gold is bought in the country, as India is one of the largest consumers of gold worldwide.
The mood to buy gold has changed in India
Goyal said that the demand for investment in gold is expected to increase due to reasons like geopolitical uncertainty, rise in gold prices and choice to diversify the portfolio. Its share in the total gold consumption in the financial year 2027 is estimated to be 35-40 percent. At 60 percent, jewelry consumption is higher than the world average of 50 percent, the report said. According to the report, the demand for investment in gold in India has reached a record level. The main reason for this is the increase in purchase of gold ETFs (exchange traded funds) and gold bricks and coins. This, among other reasons, also reflects the increasing demand for gold as a safe-haven.
Why is the demand for investment increasing?
The agency believes that gold prices have now reached a high level which will remain for a long time. This situation is being strengthened not only by short-term speculative investments, but also by major changes in gold demand, continued purchases by the government sector, and economic and geopolitical uncertainty around the world. However, the report also said that despite high prices, demand for jewelery in India remains strong. According to the report, the demand for jewelery will increase by 10 percent in 2025 and will reach Rs 4.8 lakh crore.
