Global gold demand is set to reach a record high in 2025, rising 8 percent from the previous year to nearly 5,000 metric tons (MT), CareAge Ratings reported. This increase was mainly due to strong investment demand, despite high gold prices and economic challenges.
CareEdge Director Akhil Goyal said that global tensions, rising gold prices and the desire to diversify investments will continue to promote investment in gold. The share of investment in total gold consumption is estimated to be 35-40 percent by FY 2027.
The report said that despite record prices, demand for jewelery in India remains strong. In the year 2025, the purchase of jewelery will increase by about 10 percent to Rs 4.8 lakh crore. An average annual increase of 11 percent has been recorded in the expenditure on jewelery between the year 2021 and the year 2025.
According to the report, the income of listed jewelery companies may increase by 35 percent in FY 2026 and 20-25 percent in FY 2027. The reason for this is the opening of new stores and rapid growth of the organized market.
Average gross profit margin is estimated to increase by 170-200 basis points in FY2026 due to gains from unhedged gold stocks.
The report said that global investment demand in the year 2025 was 2,175 metric tons, which is more than the previous record of 1,805 metric tons in the year 2020. In this, investment of 800 metric tonnes in Gold ETF was prominent.
Due to global risks and the need for safe investments, people diversified their investments, which increased the demand for gold. In India too, investment in ETFs has increased rapidly in the last two years. There was an investment of 37.5 tonnes in the year 2025, which is more than the total investment of the last 10 years.
Central banks bought gold on a large scale for the fourth consecutive year, which makes it clear that gold is being seen as a safe investment amid global challenges.
A change has been observed in gold consumption globally. The share of jewelery will decline by 19 percent to 33 percent in the year 2025, which is much lower than the average of the last 15 years. In India too, the share of jewelery in total gold purchases has come down to below 60 percent, whereas earlier it used to be around 70 percent.
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