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.