For generations, India has been synonymous with gold jewellery. But the latest data point to an important shift: Indians are increasingly buying gold as an investment, not simply as jewellery.
In Q1 2026, investment demand across gold bars, coins and ETFs reached 82 tonnes, up 54% year-on-year, compared with 66 tonnes of jewellery demand. On the comparable net basis used in the chart, investment represented nearly 70% of Indian gold demand, while jewellery fell to around 30% — its lowest share in the World Gold Council’s data going back to 2000.
The physical market is particularly striking. Indians purchased 62 tonnes of bars and coins, up 34% YoY and the strongest first quarter since 2013. Gold ETFs added another record 20 tonnes, with ETF holdings reaching 115 tonnes by the end of March.
This is more than a change in how Indians buy gold. It is a change in why they own it.
This strengthens our long-term bullish view on gold. India is one of the world’s largest gold markets, and a structural migration from jewellery toward bars, coins, ETFs and digital forms of gold could make demand increasingly investment-driven and price-sensitive to the upside.
We would maintain a strategic 5–10% gold allocation in diversified portfolios and use meaningful price corrections to build positions rather than chase sharp rallies.
The bigger message from the chart is clear: gold in India is evolving from something you wear into something you invest in.
