Arya News - India remains the world’s second-largest gold consumer, and its investment demand in gold spiked 20% year on year in September quarter to 91.6 metric tonnes, or 67% in value terms to $10.2 billion.
NEW DELHI – In the September quarter, the share of total consumption of gold spiked to an all-time high as the World Gold Council (WGC) said that the rising gold prices are spurring Indian investors to buy bars and coins, with record purchases worth $10 billion.
India remains the world’s second-largest gold consumer, and its investment demand in gold spiked 20% year on year in September quarter to 91.6 metric tonnes, or 67% in value terms to $10.2 billion.
Local gold prices also surged 56% so far in 2025 after a 21% rise last year. The price of local gold prices hit a record 132,294 rupees per 10 grams earlier this month.
Investment demand accounted for 40% of total gold consumption in the first nine months of 2025, the highest on record, the WGC said.
Overall gold consumption, however, fell 16% to 209.4 tonnes as jewellery demand slumped 31% to 117.7 tonnes due to record-high prices.
Sachin Jain, CEO of WGC’s India operations said, “Gold has become a mainstream asset as investors diversify portfolios and boost allocations, even among those with little prior exposure.”
“We believe investors’ interest in gold will continue and grow in the coming quarters,” he added.
Jain said the demand in the December quarter is expected to exceed that of the September quarter, supported by festivals and the wedding season. However, despite this seasonal recovery, total gold demand in 2025 could range between 600 and 700 metric tonnes, the lowest since 2020, and down from last year’s 802.8 tonnes.