Key Highlights

• Gold investment demand surges 170% in Q1 2025, fueled by market volatility and geopolitical tensions.
• Investors pivot to gold ETFs amid record prices, as jewellery demand drops 25% in India.

As gold prices have risen to a record Rs 93,217 per 10 grams, Indian investors are shifting away from heavy jewellery purchases and into gold exchange-traded funds (ETFs).

A recent report from Motilal Oswal Private Wealth claims that market volatility, geopolitical tensions, and the desire for safer, more intelligent assets are the main causes of the 170 percent annual increase in investment demand. Demand for jewelry decreased by 25% in volume, but ETFs gained prominence.

According to the report, while traditional jewelry sales fell by 25%, Indian investors poured money into gold ETFs and digital gold products.

Investment demand increased 170 percent year on year, owing primarily to strong gold-backed ETF inflows, particularly in Europe, Asia, and India.

It also stated that, while traditional jewelry purchases fell by 25%, Indian investors poured money into gold ETFs and digital gold products.

Demand for investment in gold rose by 170 percent over the year, mainly due to solid ETF purchases in Europe, Asia and India.

Experts say investor appetite for gold ETFs is growing, as these offer simplicity, high liquidity and better returns.

Gold investment demand rose remarkably in Q1 2025, reaching 552 tones according to the report, a jump of 170 percent compared to the previous year. The level was close to that found in the previous quarter following the Russia-Ukraine war’s outbreak.

Also Read: Gold Imports Surge 192% to USD 4.47 Billion in March

Most of the difference was due to strong demand for gold ETFs, a level not seen since 2018. During the quarter, there was a 226 tone increase in total gold holding for global ETFs, so the total now stands at 3,445 tones. The boost came from growing trade disagreements and a rising gold price, with investors rushing to gold as a safe haven.