He dismissed concerns that the surge in prices — with gold now trading above $4,200 per ounce — is a bubble, stressing that the rally is driven by real demand and not speculation. “The pillars on which gold pricing is built still seem more in favour of gold,” Jain explained, stating that the market is seeing a deficit of physical gold and premiums of $20–$30 per ounce, reflecting strong buying activity.
Jain pointed out that physical demand in India remains robust, led by festive and bridal buying as well as investment purchases. Stores, he said, have been busy since prices crossed key levels, with consumers showing little hesitation despite higher costs.
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According to Jain, Indian households collectively hold about 25,000 tonne of gold, making it one of the largest private holdings globally. He added that new buyers are entering the market, drawn by gold’s strong performance — a 51% gain this year and over 7% compounded annual growth in the long term.
Jain also highlighted that gold’s financialisation is picking up pace worldwide, with over 634 tonne added to ETFs globally this year. He said gold’s daily trading value has reached around $6 trillion, making it one of the most liquid and resilient assets across global markets.
Also Read: Gold prices may stabilise near $4,000 an ounce, says HSBC strategist
For the entire interview, watch the accompanying video
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