Gold investment demand up 73%

AT A TIME when the overall demand for gold fell 11% to 710.9 tonne in 2025, the total value of gold held by Indian households have risen to a whopping $6 trillion.

- RAJESH BHAYANI

According to a World Gold Council report released on Thursday, the overall gold demand in the fourth quarterwas down 9% to 241.3 tonne. Market estimates say Indian households have around 32,000 tonne of gold.In the December quarter, jewellery demand dropped 23% to 145.3 tonne, while the investment demand increased 26% to 96 tonne.

The total investment in gold was ₹2.97 lakh crore, 73% higher than a year ago, indicating investors’ preference for gold over other investment avenues.

Chirag Mehta, CIO, Quantum AMC, said there were several reasons behind the soaring investment demand. Expensive valuations in equities a year ago led to a phase of consolidation, the Reserve Bank of India interest rate cut led to lowering of deposit rates and underperformance in the real estate sector has nudged investors to look for gold as an asset class. “The consistently rising gold prices have only reinforced the fundamental global view...”