Indians are emerging as prominent investors in gold exchange-traded funds (ETFs) this year, with their investments proving fruitful as the precious metal has surged more than 45 percent thus far in 2025. According to data from the World Gold Council (WGC), India ranks as the seventh largest investing nation in gold as of September 26, surpassing developed countries like Canada, Japan, Australia, Italy, and Hong Kong.
Despite this notable position, India’s investments in gold ETFs still represent less than four percent of the leading investor, the United States, and just over one-third of China’s investments in similar assets.
Increasing investments in ETFs come during a period where gold prices are hitting daily highs. On Tuesday, gold reached a peak of $3,871 per ounce before experiencing a slight pullback due to profit-taking. By 7:30 PM IST, gold traded at $3,824, with US gold futures recorded at $3,854. In India, December futures on the Multi Commodity Exchange (MCX) were valued at ₹1,16,377 per 10 grams, while the benchmark price in the Mumbai spot market closed at ₹1,15,349.
Despite some profit-taking activity affecting gold, analysts maintain that the metal’s prices are likely to remain volatile but bullish in the long term, with a potential to approach $4,000 per ounce. Current market dynamics are influenced by heightened demand for safe-haven assets amid concerns regarding a potential US government shutdown.
The WGC report indicated that assets under management (AUM) for gold ETFs in the US stand at $231.5 billion, followed by the UK at $77.5 billion, Switzerland at $43.5 billion, Germany at $40.2 billion, China at $22.9 billion, and France at $9.5 billion. India’s AUM in gold ETFs, amounting to $8.9 billion, is comparable to Canada.
Inflows into gold ETFs in India have totaled $1.35 billion in 2025, reflecting a 12.5 percent increase in demand. For the current quarter, investments reached $371 million. In August alone, India recorded the fifth largest inflow at $232.6 million, contributing to a total of 70 tonnes of physical gold held by ETFs in the country.
However, the WGC expressed that soaring gold prices are beginning to affect ETF investment levels. As of September 26, demand dipped to 27.2 tonnes, with inflows decreasing to $3.43 billion from $5.51 billion in August. The US accounted for two-thirds of inflows at $2.11 billion, down from $4.10 billion in August, while European investments fell by more than 50 percent to $745 million from $1.95 billion. Conversely, Asia saw positive inflows of $548.2 million, a rebound from an outflow of $495.3 million. Overall, gold holdings increased this year to 3,806 tonnes from 3,691.5 tonnes.
While global interest in gold remains strong, silver has notably outperformed gold in 2025, appreciating by approximately 60 percent. During early trade on Tuesday, silver peaked at a 14-year high of $47.2 per ounce before retreating to $46.18. In the Indian market, silver was priced at ₹1,42,423 per kilogram, with MCX December futures at ₹1,41,530 per kilogram.
Silver’s rising prices are aligned with those of gold; however, the metal is facing a continuing physical shortage for the fifth consecutive year due to increased demand from sectors such as solar energy, electric vehicles, and electronics.
Published on September 30, 2025.
