Indians buy more gold for investment than jewellery for first time, says World Gold Council

Investment-led buying of gold in India outpaced jewellery consumption for the first time on record in the March quarter, reflecting a shift in investor preference amid muted equity returns, the World Gold Council (WGC) said on Wednesday (April 29).

Rising purchases of bars, coins and exchange-traded funds helped offset a slowdown in jewellery demand, which declined as higher prices weighed on consumer buying. This shift kept overall gold demand broadly supported during the quarter.

According to the report, investment demand rose 52% year-on-year to 82 tonnes, while jewellery consumption fell 19.5% to 66 tonnes. Total gold demand in the country increased 10.2% to 151 tonnes during the period.

Investment demand accounted for 54.3% of total consumption in the quarter, exceeding jewellery’s share for the first time.

Traditionally, investment demand contributes roughly a quarter of India’s overall gold consumption.

Sachin Jain, chief executive of the WGC's Indian operations, said investment interest is expected to remain strong, driven by participation from both financial and retail investors. He added that this segment is likely to play a more prominent role in the coming quarters.

Gold exchange-traded funds saw a sharp increase in inflows, rising 186% year-on-year to a record 20 tonnes.

The trend has been supported by relatively subdued performance in equities, with the Nifty 50 gaining only about 2.4% since early 2025, even as domestic gold prices have nearly doubled over the same period.

The divergence in returns has encouraged investors to increase allocations to gold, reinforcing the metal’s appeal as a store of value in uncertain market conditions.

-With Reuters inputs