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decline in demand for gold

Gold prices in India have reached record levels this year, and its impact is now clearly visible on purchases as well. According to the new report of the World Gold Council (WGC), the demand for gold in the country declined by 16% to 209.4 tonnes in the quarter from July to September 2025. However, the prices increased so much that the total value of gold jumped by 23%.

Expensive gold slowed down purchasing

According to the Economic Times, common buyers have retreated due to the continuous increase in gold prices. According to WGC, the demand for jewelery declined by 31% in this quarter and it stood at 117.7 tonnes. Due to expensive rates, people preferred to buy light and low carat jewelery instead of heavy jewellery. Apart from this, the Shraddha period falling in September also affected the sales, because buying gold or any precious item during this period is not considered auspicious.

Increased interest in bars and coins

While on one hand the sales of jewelery decreased, on the other hand the number of people buying gold as investment increased. Investment demand jumped 20% to 91.6 tonnes. Its total value increased by 74% to about ₹ 88,970 crore.

The report said that India imported 194.6 tonnes of gold in this quarter, which is 37% less than last year. At the same time, recycling of old gold also decreased by 7% to 21.8 tonnes. This means that people are preserving their old jewelery instead of selling it.

Demand increased globally

On the other hand, worldwide gold demand increased by 3% and reached 1,313 tonnes. Strong buying of ETFs (exchange traded funds) and coins supported global demand. More than 300 tonnes of gold coins and bars were purchased for the fourth consecutive quarter, making it clear that investors around the world are considering gold as a safe investment.