Gold Fever Grips India: Investment Demand Hits Record $10 Billion as Buyers Rush to Safety

Business News: In September, Indians rushed to buy gold like never before. The World Gold Council reported investment demand rising 20% by volume and 67% by value compared to last year. Investors bought 91.6 tonnes of gold, showing a strong shift from jewelry to investment. Rising prices, global economic uncertainty, and a need for safe options pushed many families toward gold bars, coins, and ETFs. This is the highest level of gold investment India has ever seen.

Is Gold Now Beating Jewelry?

Traditionally, Indians love gold jewelry, but this year the shine of ornaments dimmed. Jewelry demand dropped 31% to 117.7 tonnes due to record high prices. Total gold consumption also slipped by 16%. However, gold investment, including bars, coins, and exchange-traded funds, rose sharply. For many, it was no longer about wearing gold but about keeping it as security for the future.

What Role Did ETFs Play?

Gold exchange-traded funds became a major player in this surge. According to data from AMFI, inflows into gold ETFs hit a record ₹83.63 billion in September. This showed that not only traditional buyers but also younger, urban investors are choosing gold in digital forms. Sachin Jain of WGC said ETFs are bringing a new wave of investors who prefer convenient and safe ways of holding gold.

How High Did Prices Go?

Gold prices have been climbing at a record pace. In June, domestic prices touched ₹132,294 per 10 grams, marking a 56% jump in 2025 alone after a 21% rise last year. With such high prices, gold has turned into a wealth protector. Experts believe that as long as global uncertainties remain, gold prices will stay strong and continue to attract buyers.

Will Festivals Push Demand Higher?

The September quarter already saw a massive rush, but experts expect even more demand in the December quarter. With festivals and the wedding season approaching, families are likely to purchase both jewelry and investment gold. Though prices are high, cultural traditions ensure that demand continues. Analysts estimate that total demand in 2025 may reach between 600 and 700 tonnes.

What Makes Gold a Safe Bet?

Gold has always been India’s favorite shield against inflation and economic troubles. Unlike stocks or real estate, it is easy to buy, store, and sell in times of crisis. This trust, combined with rising global uncertainties, has made gold a must-have in every portfolio. Even those who never invested before are now entering the gold market, seeing it as insurance for their savings.

What Lies Ahead for Investors?

Looking ahead, experts suggest investor interest will remain strong. The World Gold Council believes gold’s role in Indian households will grow even more as people look for stable assets. With new digital investment options, ETFs, and changing attitudes, gold is no longer just tradition—it’s strategy. For many Indians, the message is clear: when in doubt, buy gold.