In 2024, India witnessed a remarkable 60% surge in gold investments, reaching $18 billion (approximately ₹1.5 lakh crore), as per a report by the World Gold Council (WGC). This increase was driven by rising gold prices, reduced import duties, and heightened demand during festive seasons. India’s gold investment demand reached 239 tonnes—the highest since 2013—accounting for 20% of the global gold investment demand. This article explores the key factors behind this surge and its implications.
Key Highlights
Significant Growth
- India’s gold investments surged by 60% in 2024, reaching ₹1.5 lakh crore ($18 billion).
- Gold investment demand in India stood at 239 tonnes, a 29% increase from 185 tonnes in 2023.
Global Gold Demand Trends
- India accounted for 20% of global gold investment demand (1,180 tonnes).
- Global demand for gold investments grew by 25%, reaching 1,180 tonnes in 2024, compared to 945.5 tonnes in 2023.
Key Factors Behind the Surge
- Rising Gold Prices: A steady increase throughout the year made gold an attractive investment.
- Import Duty Reduction (July 2024): Encouraged buying as prices climbed again after an initial dip.
- Festive Season Demand: Dhanteras and Diwali (October–November) led to high gold purchases.
- E-commerce Boom: Rapid delivery of gold bars and coins in 10-15 minutes boosted sales.
- Weaker Stock Market Performance: A decline in stock markets in the latter half of the year made gold a safer alternative.
- Geopolitical Uncertainty & Interest Rate Expectations: Global economic conditions favored gold as a secure asset.
Quarterly Performance
- Q4 (Oct-Dec 2024): Gold investment demand reached 76 tonnes, nearly matching Q3 levels.
- Global Gold ETFs: After hitting a four-year low of 3,080 tonnes in April 2024, ETF holdings gradually recovered.
Future Outlook
- Expansion into gold exchange-traded funds (ETFs) and mutual funds is expected.
- Continued investor interest amid economic uncertainty and fluctuating stock markets.
| Summary/Static | Details |
| Why in the news? | India’s Gold Investments Soar 60% to ₹1.5 Lakh Crore in 2024 |
| Total Investment Growth | 60% increase, reaching ₹1.5 lakh crore ($18 billion) |
| Gold Investment Demand (India) | 239 tonnes (Highest since 2013) |
| Gold Investment Demand (2023) | 185 tonnes |
| India’s Share in Global Demand | 20% of global gold investment demand (1,180 tonnes) |
| Global Gold Investment Growth | 25% increase (from 945.5 tonnes in 2023 to 1,180 tonnes in 2024) |
| Key Factors Driving Growth | Rising gold prices, reduced import duties, festive demand, weak stock markets, e-commerce sales, geopolitical uncertainties |
| Festive Season Boost | Increased buying during Dhanteras and Diwali (Oct–Nov 2024) |
| Quarterly Demand (Q4 2024) | 76 tonnes, close to Q3 levels |
| Gold ETFs Performance | Recovered after hitting a 4-year low of 3,080 tonnes in April 2024 |
| Future Outlook | Expansion into ETFs, mutual funds, and continued investor interest |
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