Global Gold ETF Holdings Surge as Investment Demand Reaches Record Levels
Global gold ETF holdings jump 801 MT; ETF share in consumption surges to 16% in CY25 from near zero: Report
The Economic TimesImage: The Economic Times
Global gold exchange-traded fund (ETF) holdings increased by 801 metric tonnes in calendar year 2025, marking a significant shift in consumption patterns. The share of ETFs in gold consumption rose to 16%, while jewelry demand fell to 33%. This trend reflects heightened safe-haven demand amid geopolitical uncertainties.
- 01Global gold ETF holdings increased by 801 metric tonnes in 2025.
- 02The share of gold ETFs in global consumption surged to 16% from near zero.
- 03Jewelry demand fell to 33%, significantly below the long-term average.
- 04Investment demand in India rose to 42% of total gold consumption.
- 05Total global gold demand reached an all-time high of 5,000 metric tonnes.
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In calendar year 2025, global gold exchange-traded fund (ETF) holdings grew by 801 metric tonnes, marking the second-highest increase on record. This surge is attributed to heightened investment demand driven by safe-haven motives and diversification strategies amid geopolitical uncertainties. The share of ETFs in global gold consumption jumped to 16%, a stark increase from virtually zero in the previous year. In contrast, the share of jewelry in gold consumption declined to 33%, significantly below the 15-year average of 50%, as consumers reduced discretionary purchases in response to rising prices.
In India, the investment share in gold consumption rose to 42% from 29% in 2024, reflecting similar trends observed globally. Total gold demand reached an unprecedented 5,000 metric tonnes, an 8% year-on-year increase, with central banks continuing large-scale gold accumulation. Despite high gold prices, Indian jewelry demand remained robust, with purchases rising 10% year-on-year to ₹4.8 lakh crore (approximately $58 billion USD). However, the volume of jewelry purchased fell by 15%, indicating a shift towards lower-carat and lighter-weight options due to price sensitivity. Analysts predict that the share of gold ETFs in overall consumption may reach 35-40% by fiscal year 2027, driven by ongoing geopolitical risks and structural shifts in demand patterns.
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The shift in gold consumption patterns may affect pricing and purchasing behavior in the jewelry market, with consumers likely to prioritize investment over luxury purchases.
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