Gold has always been expensive for the Indian middle class. But, due to the way gold has picked up the pace of inflation since last year, it has become almost out of reach of the people. Despite this, there is still demand for gold among the people. Meanwhile, a report has revealed that more Indians than before are buying gold for investment rather than jewellery.
The share of such consumers is expected to increase to 40 percent in the current financial year. This information was given in a report released on Monday. According to this report by domestic rating agency CareAge, the share of jewelery consumption in total gold purchases has fallen to below 60 percent in 2025, while the long-term average has been 70 percent.
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share of consumers investing
Domestic rating agency CareAge has said in its report that the share of consumers investing in gold may increase to 40 percent in the current financial year. In this report released on Monday, it has been said that the share of jewelery consumption in total gold purchases has fallen to below 60 percent in 2025, while its average for long-term investment has been 70 percent.
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How is investment demand increasing?
CareEdge Director Akhil Goyal said this reflects a structural change in the gold buying pattern of India, one of the world’s largest gold consumers. Goyal said, ‘Geopolitical uncertainty, rising gold prices and portfolio diversification preferences will continue to boost investment demand for gold. The share of investment in total gold consumption in the financial year 2026-27 is estimated to be 35-40 percent.
Investment demand in India at record level
The report said that 60 per cent of jewelery consumption is still higher than the global average of 50 per cent. Investment demand in India has reached record levels, led by purchases of gold ETFs and bars and coins. This inter alia reflects the demand for safe investments.
The agency believes that gold prices have now entered a permanent high-value phase. This is being supported by structural changes in demand, continued buying by central banks and global macroeconomic and geopolitical uncertainty.
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