Younger Investors to Drive ETF Growth as Gold Demand Remains Strong in 2025: WGC

India’s Gold Demand Holds Strong in 2025 as Younger Investors Drive ETF Growth, Says World Gold Council

India’s long-standing affinity for gold took on a stronger investment-driven character in 2025, with demand remaining robust despite record price highs and softer jewellery volumes. According to Sachin Jain, Managing Director of World Gold Council (WGC) India, the year saw exceptional momentum in both financial investment and value-driven jewellery purchases, setting the stage for sustained demand through 2026 and 2027.

Speaking on India’s evolving gold landscape, Jain said the year delivered “over 45 all-time peaks” in gold prices, reflecting the metal’s strong performance and inflation-hedging appeal. He noted that the fundamentals supporting gold remain intact, suggesting that the ongoing rally “has more room to run into 2026.”

Record Gold Prices and Shifting Consumer Behaviour Mark India’s 2025 Gold Market

Gold prices in India hit multiple record highs throughout 2025, supported by global economic uncertainty, geopolitical tensions, and rising domestic disposable income. Jain said demand stayed resilient because Indian buyers increasingly view gold as both a lifestyle purchase and a financial asset.

While jewellery volumes softened, overall value growth remained positive, aided by higher price points and rising household incomes. Jain said jewellers are already preparing for “the next phase of gold, which is going to be 2026–27,” indicating confidence in continued structural demand.

The Indian jewellery market, valued at $90 billion in 2025, is projected to reach $150 billion by 2033, driven by rising consumer confidence, increasing transparency, and expanding middle-class wealth. Jain emphasised this shift, saying, “The sheer disposable wealth in the hands of Indians is going year by year.” According to him, higher incomes consistently translate into higher gold ownership.

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Younger Investors Power India’s Rapid Shift Toward Gold ETFs and Digital Gold

One of the most transformational trends of 2025 has been the changing profile of gold investors. Jain highlighted a sharp increase in participation from younger buyers, who are accelerating the shift toward gold ETFs and digital gold platforms.

“The folios… are getting younger,” he said, noting that millennials and early professionals are adopting gold as a disciplined investment tool rather than a traditional store of value. Gold ETF holdings in India surged from 56–57 tonnes at the start of the year to 86 tonnes by November, reflecting heightened interest in transparent, easily tradable gold instruments.

The country also saw nine million new gold investment folios added during the year. Jain attributes this surge to digital convenience and rising financial awareness, which is enabling younger investors to approach gold with a long-term portfolio mindset.

Gold Strengthens Its Position as a Mainstream Financial Asset in India

Gold’s appeal as a financial instrument has strengthened noticeably in recent years. Jain said, “Investment demand is going to cross $6 trillion… this makes gold the most liquid asset on planet Earth.” With global liquidity, price stability and cross-border acceptance, gold continues to cement its position as one of the world’s most trusted assets.

In India, regulatory enhancements have also boosted investor confidence. The introduction of BIS hallmarking, unique jewellery IDs, and stricter authentication norms have improved transparency, reduced counterfeiting risks and supported more structured industry growth. These efforts have helped reposition gold as a credible and regulated investment avenue for new-age buyers.

Moreover, gold’s rising role in portfolio diversification is resonating with both urban and semi-urban investors. Despite volatility in global markets and sharp movements in other asset classes, gold continues to offer a safe-haven appeal that Indian investors increasingly value for balancing their long-term holdings.

Jewellery Demand Remains Resilient as Value Growth Outpaces Volumes

Even as financial investment in gold accelerates, traditional jewellery demand remains a critical driver of India’s gold ecosystem. Higher price points have moderated volumes slightly, but the overall market continues to expand thanks to rising incomes, festive and wedding-season demand, and improved transparency across retail chains.

Jain noted that the jewellery industry is undergoing structural transformation led by organised players, digital customer journeys, and a more informed consumer base. With households allocating higher budgets to culturally significant purchases, value-led growth is expected to continue in 2026 and 2027.

A Strong Outlook for 2026–27 as India’s Gold Ecosystem Evolves

The World Gold Council expects positive momentum in India’s gold demand over the next two years, driven by a combination of investment demand, rising ETF adoption, digital gold penetration, and sustained jewellery purchases. With global uncertainty expected to persist, gold is likely to remain a preferred hedge, especially among younger investors.

Jain summarised India’s gold trajectory succinctly:
“The fundamentals… are still going strong.”

From record price highs to a surge in digital adoption and a generational shift in investment behaviour, India’s gold market is entering a new phase—one shaped by transparency, technology and a broader understanding of gold as both an emotional and financial asset.

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