A higher number of Indians are now buying gold for investment purposes as compared to jewellery. The share of such consumers is expected to rise to up to 40% in the current fiscal year 2026-27, news agency PTI said, citing a report by the domestic rating agency Careedge.
World Gold Council (WGC) said India’s gold demand witnessed a 10% year on-year rise to 151 tonnes during the January-March quarter of this year. Out of which, investment-led buying in bars, coins and ETFs accounted 82 tonnes.
Share of jewellery in total gold purchase shrinks in 2025
The share of jewellery consumption fell below 60% of total gold purchases in 2025 compared to long-term average of 70%, the report mentioned. At 60%, the jewellery consumption is higher than the world average of 50%. India is one of the largest consumers of gold globally. Jewellery sales declined 15% YoY in CY25 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, with its share in overall gold consumption is projected at 35-40 per cent in FY27.
-CareEdge, director, Akhil Goyal
Global jewellery demand shrinks: WGC
World Gold Council report released on Wednesday also said that global jewellery demand also declined sharply, falling 23% year-on-year to 300 tonnes in January-March quarter of FY26. Demand weakened across all major markets, with notable declines in China (32%), India (19%) and the Middle East (23%).
Domestic organised jewellery retailers are expected to report revenue growth of over 35 per cent year-on-year in FY26, driven by steady consumer appetite for jewellery despite rising gold prices, market-share gains from accelerated sector formalisation and planned store additions.
-Raunak Modi, Assistant Director, CareEdge Ratings
Where are people investing?
WGC’s report states hike in purchase of gold coins and bars in Q1 FY26. Careedge report states that share of investment demand rose sharply to 42% in CY25 from 29% in CY24. The report said the surge in investment demand was led by gold ETFs and bar-and-coin buying.
Market analysis suggests that some jewellery consumption has moved into bar and coin demand, particularly in markets like China and India where jewellery can act as a proxy investment.
-WGC Regional CEO, India, Sachin Jain to PTI
How much gold RBI bought?
According to WGC, the Reserve Bank of India (RBI) made a fresh purchase of 300 kg of gold during the January-March quarter. Other central banks also continued to support overall demand, adding 244 tonnes to global reserves in the first quarter.
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