Blog
Sign Up / Login

Gold is Shining & Ready to Dominate in 2025

2024 was a blockbuster year for gold. Prices soared, central banks couldn’t stop buying, and investors flooded in. Now, as we step into 2025, gold looks set for another golden run. Let’s dive into the key factors driving this trend.

Supply & Demand: The Power Struggle

Gold Supply & Demand by Sector (Tonnes)

Source: Metals Focus, Refinitiv GFMS, ICE Benchmark Administration, World Gold Council

Supply: The Struggle for Growth

Gold isn’t like fiat money—you can’t just print more of it. Global mine production barely moved, up just 0.5% YoY. Recycled gold helped a little, rising 11%, but overall supply growth was just 1%.

The real force behind rising gold prices? Surging demand!

Demand: Gold’s Growth Engine

Gold’s demand in 2024 was diverse:

  • Jewellery (41%) – Festivals, weddings, and cultural traditions kept demand resilient.
  • Industrial (7%) – AI, semiconductors, and medical technology boosted usage.
  • Investment (25%) – Surging ETF inflows, bar & coin demand skyrocketed.
  • Central Banks (23%) – Nations hoarding gold amid uncertainty.

Jewellery Demand: Tradition Shines Through

While global jewellery demand fell 11%, India remained strong, dropping only 2%. Cultural traditions and weddings ensured consistent gold buying, making India the second-largest consumer.

Source: WGC

Tech & AI — The Quiet Demand Driver

Industrial gold demand rose 7%, driven by AI, semiconductors (+9% in electronics), and medical/space tech. India’s growing electronics sector could further boost this in the coming years.

Source: WGC

Investment Demand — The Biggest Catalyst

Investment demand saw its biggest jump in four years, rising 25% YoY:

  • ETFs rebounded, with OTC inflows surging as institutions sought safety.
  • India stood out—bars & coins demand surged 29% to 239 tons.
  • Digital gold platforms made investing easier, fueling the frenzy.
Source: WGC

Central Banks: Gold’s Biggest Buyers

Central banks remained massive buyers, adding 1,044t in 2024—the third consecutive year of 1,000+t purchases.

  • China: 44t
  • Turkey: 75t
  • Poland: 90t
  • India’s RBI: 73t (4x 2023 levels), boosting reserves to 876t (11% of forex reserves)

Who’s Importing the Most Gold?

  • China: 1,411t in 2024, driven by economic uncertainty and US tensions.
  • India: Festivals, weddings, and a deep-rooted love for gold kept demand strong.

  • Turkey: Despite a 25% drop, demand remains double the 10-year average.

Gold vs. Other Asset Classes

*As of 31 December 2024. Indices used: MCX Gold Index, CRISIL Corporate Bond Index, S&P BSE Sensex Total Return Index, Clearing Corp of India Liquidity Weight T-Bill Index, ICE BofA Govt Bond Index. Source: Bloomberg, World Gold Council

What’s Next for Gold in 2025?

Gold thrives on uncertainty—geopolitical risks, trade wars, inflation, and global instability are all bullish factors.

  • In the last six months, gold surged $431 (+17.41%) as investors rushed in amid rate cuts, US-China tensions, and economic slowdowns.
  • India’s gold demand may ease slightly (700-800t expected in 2025, per WGC), but it won’t disappear. Weddings, festivals, and digital gold adoption will keep it resilient.

The Bottom Line

With central banks hoarding, investment demand soaring, and economic uncertainty persisting, gold’s golden run is far from over. If you think gold has peaked, think again.

Stay invested, stay golden!

Sources: World Gold Council

For more financial insights, check out our blog: The Kindleberger Economic Spiral: How Fear Fuels Financial Crises

 

Related Posts

Types of Shares in India

Types of Shares in India: Explained Simply

A share represents a piece of ownership in a company, meaning the person who

Navigating Regulatory Changes: Understanding the Impact on Alternative Investments

The landscape of alternative investments is continually evolving, shaped not only by market trends

global economic shifts

Hindenburg Back Again & More

“There are decades where nothing happens; and there are weeks when decades happen” –Vladimir

Get In Touch

+91 8591871028 | +91 8928250817 connect@incredmoney.com
Click here for NRI Login

Social Media

Facebook-f Instagram Linkedin-in X-twitter

Download InCred Money App

Disclaimer

Fixed Deposits are offered by Banks/NBFCs and are regulated by the Reserve Bank of India. Alpha Fintech Private Limited, under the brand name of InCred Money, is acting in the capacity of Sub Agent/Referral Partner for distribution of Fixed Deposits of Banks and NBFCs. The funds transferred by the customer for the Fixed Deposits are directly credited to the regulated entity offering the Fixed Deposit product. Fixed Deposits are offered to Resident Indians above the age of 18 who have a PAN & an Aadhaar. Interest rates are subject to change. *T&C apply.
The information and data provided on the InCred Money platform concerning unlisted equities are solely for informational purposes and should not be interpreted as a recommendation or solicitation to invest. InCred Money and its representatives are not SEBI-registered research analysts or advisors. Any research, analysis, or information presented on this platform does not constitute investment advice or a recommendation by InCred Money or its affiliates. Investors are strongly encouraged to perform their own thorough research and due diligence before making any investment decisions. Any decision to invest or not to invest shall be at your own discretion. Unlisted equities carry a higher risk profile compared to listed securities, including but not limited to liquidity risk, regulatory risk, and market volatility. Potential investors should be aware of these risks and consider them carefully. It is highly recommended that investors consult with their own financial advisors to understand the suitability of such investments in the context of their personal financial situation, investment objectives, and risk tolerance. Additionally, investors should read and fully understand the detailed risk profile and disclosures attached to the unlisted equities before proceeding with any investment.
The information mentioned on the platform is based on publicly available data and to the best of our knowledge, does not constitute insider information.
Pre-IPO shares are unlisted securities, but this should not be interpreted as InCred Money guaranteeing or confirming that an IPO will take place for these shares. The decision to proceed with an IPO is entirely at the discretion of the issuing company, which may choose not to go public.
InCred Money is the brand name of Alpha Fintech Private Limited with its registered office at The Capital, Unit No 1203, 12th floor, B Wing, Plot No. C-70, G Block, Bandra Kurla Complex, Mumbai – 400 051.
Unless otherwise mentioned, Alpha Fintech Private Limited will be the counterparty (seller) while making your investment.
*Corporate Bonds transactions are executed on Biddeasy.com. Biddeasy is Online Bond platform provider and registered with BSE and NSE in the name of Oro Financial Consultants Pvt Ltd.
Oro Financial Consultants Pvt Ltd is the Stock broker entity operating in cash and debt segment with BSE and Debt segment with NSE having SEBI registration number: INZ000312534, Registered as an Online Bond Platform Provider in BSE Ltd.(Member Code: 6821) and National Stock Exchange of India Limited (Member Code: 90389)