Gold Investment In India: Gold has become one of the most sought-after investment products in recent times. Considered to a safe haven and a hedge against inflation, CareEdge Ratings recently said that gold investment demand in India has it decade high in 2025, increasing by nearly 40 per cent of total consumption in CY2025.
As per CareEdge Ratings, this is the highest in recent memory, with ETFs adding 37.5 tonnes of the total consumption, up more than the combined investment of the previous 10 years.
The surge is mainly driven by rising geopolitical uncertainty, which took gold prices to record levels.
Gold Investment In India: Structural Shift
CareEdge Ratings also said that a structural shift was seen in gold investment, with people moving away from investing in jewellery.
According to CareEdge Ratings projection, the projected demand for gold investment in India will remain elevated at 35-40 per cent of overall gold consumption in FY27.
Notably, with markets showing extreme volatile moves due to geopolitical uncertainties trigger by Middle East war and also Trump tariffs, people will continue to diversify their portfolio by adding gold and also central banks across the world are likely to continue with their gold buying spree.
Gold Investment In India: Gold Consumption
CareEdge Ratings Director Akhil Goyal said that the shift is reshaping India's gold consumption mix. Jewellery, which historically accounted for 70 per cent of total gold purchases, has fallen below 60 per cent in CY2025.
While jewellery demand rose 10 per cent YoY in value terms to Rs 4.8 lakh crore, volumes declined 15 per cent as high prices pushed consumers toward lighter, lower-carat pieces.
"Geopolitical uncertainty, momentum in gold prices and portfolio diversification preferences are expected to continue fuelling investment demand for gold," Akhil said.
CareEdge added that the six large listed jewellers added more than 300 stores in FY26, the second straight year of 300-plus additions.
Meanwhile, silver is also gaining visibility among younger buyers, but is not replacing gold in the near term.
