Indian gold investment to surge upto 40% by FY27

Investment in gold buying in India will reach 40% by FY27, driven by geopolitical uncertainty and price momentum. A higher number of Indians are now buying gold for investment purposes as compared to jewellery, and the share of such consumers is expected to rise to up to 40 per cent in the current fiscal year. The share of jewellery consumption fell below 60 per cent of total gold purchases in 2025 compared to the long-term average of 70 per cent.
At 60 per cent, the jewellery consumption is higher than the world average of 50 per cent. Investment demand surged to record levels in India led by gold ETFs and bar-and-coin buying, reflecting safe-haven demand among other factors.

The gold prices have entered a more durable high-price regime supported not by short-term speculative flows but by structural demand shifts, sustained official sector buying and persistent global macroeconomic and geopolitical uncertainty. However, despite the elevated prices, Indian jewellery demand remains resilient and it rose 10 per cent to Rs 4.8 lakh crore in 2025.