Gold Rally Cuts India’s 2025 Gold Consumption by 11%; Coin and Bar Demand Up 17%

India’s gold market saw a sharp shift in 2025 with higher prices curbing jewellery purchases and prompting investors to favour coins and bars. 

Gold consumption drops 11% as prices surge 

World Gold Council data show that total gold intake fell to 710.9 tonnes in 2025, an 11% decline from the previous year. Jewellery demand contracted 24% to 430.5 tonnes as consumers opted for lighter, lower‑karat pieces.  

The average price rose to ₹1,01,572 per 10 gm, up from ₹70,754 in 2024, and the spot market recorded ₹1,76,121 per 10 gm on the day of the report. 

Coin and bar demand rises 17% 

Investment‑grade gold saw a 17% increase, with 280.4 tonnes purchased as coins and bars. This shift reflects investor confidence in gold as a safe‑haven asset amid global uncertainties. 

Impact on imports and recycling 

Higher prices led to a 17% fall in imports, down to 663.7 tonnes. Recycled gold volumes dropped 19% to 92.7 tonnes, indicating limited turnover of household gold. Festive‑season demand in Q4 fell 9% to 241.3 tonnes, split between 145.3 tonnes of jewellery and 96 tonnes of investment demand. 

Value of sales and market activity 

Despite lower volumes, the value of gold sales rose 30% to ₹7,51,490 crore. On the MCX, gold futures jumped over ₹14,850 to ₹1,80,779 per 10 gm, while silver surged more than ₹23,100 to ₹4,08,487 per kg, with spot silver near ₹3,85,933 per kg. 

Read More: Gold Demand Hits Record High: Surged to Over 5,000 Tonnes in 2025! 

Conclusion 

In 2025, soaring gold prices reduced overall consumption by 11% but boosted investment demand for coins and bars by 17%, while imports and recycling declined. 

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