{"id":18782,"date":"2025-12-08T17:12:06","date_gmt":"2025-12-08T11:42:06","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=18782"},"modified":"2025-12-08T17:12:06","modified_gmt":"2025-12-08T11:42:06","slug":"younger-investors-to-drive-etf-growth-as-gold-demand-remains-strong-in-2025-wgc","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/younger-investors-to-drive-etf-growth-as-gold-demand-remains-strong-in-2025-wgc\/","title":{"rendered":"Younger Investors to Drive ETF Growth as Gold Demand Remains Strong in 2025: WGC"},"content":{"rendered":"

India\u2019s Gold Demand Holds Strong in 2025 as Younger Investors Drive ETF Growth, Says World Gold Council<\/p>\n

India\u2019s 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.<\/p>\n

Speaking on India\u2019s evolving gold landscape, Jain said the year delivered \u201cover 45 all-time peaks\u201d in gold prices, reflecting the metal\u2019s strong performance and inflation-hedging appeal. He noted that the fundamentals supporting gold remain intact, suggesting that the ongoing rally \u201chas more room to run into 2026.\u201d<\/p>\n

Record Gold Prices and Shifting Consumer Behaviour Mark India\u2019s 2025 Gold Market<\/h2>\n

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.<\/p>\n

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 \u201cthe next phase of gold, which is going to be 2026\u201327,\u201d indicating confidence in continued structural demand.<\/p>\n

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, \u201cThe sheer disposable wealth in the hands of Indians is going year by year.\u201d According to him, higher incomes consistently translate into higher gold ownership.<\/p>\n

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Younger Investors Power India\u2019s Rapid Shift Toward Gold ETFs and Digital Gold<\/h2>\n

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.<\/p>\n

\u201cThe folios\u2026 are getting younger,\u201d 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\u201357 tonnes at the start of the year to 86 tonnes by November, reflecting heightened interest in transparent, easily tradable gold instruments.<\/p>\n

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.<\/p>\n

Gold Strengthens Its Position as a Mainstream Financial Asset in India<\/h2>\n

Gold\u2019s appeal as a financial instrument has strengthened noticeably in recent years. Jain said, \u201cInvestment demand is going to cross $6 trillion\u2026 this makes gold the most liquid asset on planet Earth.\u201d With global liquidity, price stability and cross-border acceptance, gold continues to cement its position as one of the world\u2019s most trusted assets.<\/p>\n

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.<\/p>\n

Moreover, gold\u2019s 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.<\/p>\n

Jewellery Demand Remains Resilient as Value Growth Outpaces Volumes<\/h2>\n

Even as financial investment in gold accelerates, traditional jewellery demand remains a critical driver of India\u2019s 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.<\/p>\n

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.<\/p>\n

A Strong Outlook for 2026\u201327 as India\u2019s Gold Ecosystem Evolves<\/h2>\n

The World Gold Council expects positive momentum in India\u2019s 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.<\/p>\n

Jain summarised India\u2019s gold trajectory succinctly:
\u201cThe fundamentals\u2026 are still going strong.\u201d<\/p>\n

From record price highs to a surge in digital adoption and a generational shift in investment behaviour, India\u2019s gold market is entering a new phase\u2014one shaped by transparency, technology and a broader understanding of gold as both an emotional and financial asset.<\/p>\n