India’s gold demand during July-September 2025 stood at 209.4 tonnes, reflecting a 16% year-on-year drop, according to the World Gold Council. Despite the decline in volume, the total value of gold consumption surged 23% to ₹2,03,240 crore compared to the same quarter last year, primarily due to a sharp increase in gold prices.
Investment demand emerged as the standout segment, soaring 20% year-on-year to 91.6 tonnes, with a 67% increase in value terms to about $10.2 billion or roughly ₹85,000 crore. This segment accounted for 40% of India’s total gold consumption in the first nine months of 2025, the highest proportion ever recorded.
The surge was driven by investors seeking safe-haven assets such as bars, coins, and gold ETFs amid volatile equity markets and a global risk-off sentiment.
Jewellery demand fell sharply by 31% year-on-year to 117.7 tonnes, impacted by record-high domestic prices. In October 2025, local gold prices touched ₹1,32,294 per 10 grams, a 56% rise year-to-date following a 21% increase in 2024. This unprecedented surge affected consumer affordability, leading buyers to defer purchases, opt for lighter ornaments, or exchange old jewellery to manage costs.
Read More: India's Gold Reserves Jump $31 Billion in FY26 Due to RBI Buying and Price Boom!
Gold Exchange-Traded Funds (ETFs) recorded unprecedented inflows of ₹8,363 crore in September 2025, underscoring growing investor confidence in physically backed instruments. The trend highlights a broader shift among Indian investors toward portfolio diversification and tangible stores of value during periods of financial uncertainty.
Although Q3 saw a contraction in overall demand, expectations remain positive for Q4 2025, supported by festive and wedding season purchases. Annual demand, however, is projected to settle between 600-700 tonnes, its lowest level since 2020 and significantly below the 802.8 tonnes recorded in 2024.
While India’s gold demand by volume declined in Q3 2025, the strong rise in value underscores gold’s enduring appeal as both an investment and a hedge against inflation. With prices at all-time highs and investment demand outperforming jewellery consumption, the market is witnessing a structural transformation in consumer behaviour and portfolio strategy.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Oct 30, 2025, 4:02 PM IST
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