India has emerged as the 7th largest gold ETF investing nation globally, surpassing developed countries like Japan and Australia in 2025. With gold prices reaching record levels, Indian investor participation in ETFs has intensified significantly.
By September 26, 2025, data from the World Gold Council indicated that India secured the 7th spot among global gold ETF holders, with assets under management (AUM) of $8.9 billion. India sits just below France, which has an AUM of $9.5 billion. This marks a significant achievement, placing India ahead of developed markets like Canada, Japan, Australia, Italy, and Hong Kong.
Gold’s sharp rally in 2025 has been a major driver for increased ETF activity. On September 30, gold touched an intraday high of $3,871 per ounce before settling around $3,824. In India, gold December futures on MCX were quoted at ₹1,16,377 per 10 gm. In the Mumbai spot market, gold closed at ₹1,15,349 per 10 gm. The trend reflects strong haven demand driven by global uncertainties.
Read More: Best Gold ETFs in India for October 2025: SBI Gold ETF, Kotak Gold ETF, and More Based on 5Y CAGR!
India recorded total inflows of $1.35 billion into gold ETFs in 2025, reflecting a 12.5% increase in demand. For the current quarter, inflows stood at $371 million, including $232.6 million in August, ranking India 5th globally that month. Physical gold holdings through ETFs in India reached 70 tonnes, showing growing investor reliance on paper gold over physical purchases.
The US leads with a massive $231.5 billion in gold ETF AUM, followed by the UK at $77.5 billion. Other key players include Switzerland with $43.5 billion, Germany with $40.2 billion, and China with $22.9 billion. India’s growing share reflects increased acceptance of gold ETFs as an investment vehicle amidst rising global demand.
While gold has appreciated over 45% in 2025, silver has surged nearly 60%, driven by strong industrial demand. On September 30, silver reached a 14-year high of $47.2 per ounce before retreating to $46.18. In Indian markets, silver was priced at ₹1,42,423 per kg in the spot market and ₹1,41,530 on MCX December futures.
India’s accelerated investment in gold ETFs underlines the country’s strategic shift in investment patterns, powered by rising gold prices and global market factors. Positioned 7th in the world, India’s sizeable AUM and growing inflows reflect its expanding footprint in global gold investment.
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 Mutual Funds are subject to market risks. Read all related documents carefully before investing.
Published on: Oct 9, 2025, 2:58 PM IST
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