New Delhi, April 27: Investment in gold in India is projected to rise to 42% of total gold consumption by the calendar year 2025, up from 29% in 2024. This increase is attributed to a growing demand for Gold ETFs and bullion, reflecting a preference for safe investments amid global uncertainties.
According to a report by CareEdge Ratings, global gold demand is expected to reach record levels in 2025, increasing by 8% to nearly 5,000 metric tons (MT) compared to the previous year. This surge is primarily driven by strong investment demand, despite high gold prices and ongoing economic challenges.
Akhil Goyal, Director at CareEdge, stated that global tensions, rising gold prices, and a desire for investment diversification will continue to promote gold investment. By fiscal year 2027, the investment share in total gold consumption is estimated to remain between 35-40%.
The report indicates that jewelry demand in India remains robust despite record prices. Jewelry purchases are projected to rise by about 10% in 2025, reaching ₹4.8 lakh crore. From 2021 to 2025, annual spending on jewelry has seen an average increase of 11%.
Listed jewelry companies are expected to see their revenues grow by 35% in fiscal year 2026 and by 20-25% in fiscal year 2027, driven by new store openings and rapid growth in the organized market.
The average gross profit margin is anticipated to increase by 170-200 basis points in fiscal year 2026, benefiting from unhedged gold stock.
The report also notes that global investment demand for gold reached 2,175 metric tons in 2025, surpassing the previous record of 1,805 metric tons in 2020, with Gold ETFs accounting for 800 metric tons of this investment.
In response to global risks and the need for secure investments, individuals are diversifying their portfolios, leading to increased gold demand. In India, ETF investments have surged over the past two years, with 37.5 tons invested in 2025, exceeding the total investment of the past decade.
Central banks have purchased gold at a large scale for the fourth consecutive year, indicating that gold is viewed as a safe investment amid global challenges.
Changes in global gold consumption patterns have been observed, with the jewelry segment’s share dropping to 33% in 2025, down from an average of 19% over the past 15 years. In India, the jewelry share of total gold purchases has fallen below 60%, down from approximately 70% previously.
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