Rising gold prices are driving Indian investors toward bars and coins, with record purchases worth $10.2 billion in the September quarter — the highest ever share of total gold consumption, according to the World Gold Council (WGC).

“Gold has become a mainstream investment as portfolios diversify and allocations rise, even among first-time buyers,” said Sachin Jain, CEO of WGC India. “We believe investors’ interest in gold will continue to grow in the coming quarters.”

Investment demand in India — the world’s second-largest gold consumer — jumped 20% year-on-year in the September quarter to 91.6 metric tons, even as overall consumption fell 16% to 209.4 tons. Jewellery demand slumped 31% to 117.7 tons, hit by record prices.

Domestic gold prices touched an all-time high of ₹1,32,294 per 10 grams in October, up 56% in 2025 after a 21% gain last year. Investment now accounts for 40% of total gold consumption, the highest on record.

Physically backed gold ETFs have also surged in popularity, drawing record monthly inflows of ₹8,363 crore in September, data from AMFI showed.

Looking ahead, Jain expects demand to strengthen in the December quarter, supported by festivals and weddings. However, total gold demand for 2025 could fall to 600–700 tons, the lowest since 2020, compared with 802.8 tons last year.