One clear sign of confidence in gold has been the fall in recycling. Gold converted back into cash dropped 19% to about 825 tonnes globally, meaning fewer people chose to sell their gold even at elevated prices.“We track the recycling of gold that happens. And when I say recycling, I’m talking about gold getting converted to cash, and that has dropped by 19%… which, again, is a very interesting element of a find, because that truly reflects the confidence that consumers have in gold,” said Sachin Jain of the World Gold Council.
A large part of the overall demand came from investors rather than buyers of jewellery or coins. Investment demand alone stood at about 2,175 tonnes during the year, making it the biggest contributor to total global demand.
Jain says this is not just about short-term price moves. “Please, look at gold as a long term diversifier, and currently, in the current context, the strength that gold has displayed on a perspective of being liquid, as an asset, from a safe haven, all those elements continue to stay very strong.”
Recent sharp swings in prices have raised questions about speculation. Jain said some of the selling pressure globally was linked to profit booking and the need to meet margin calls after volatility in equity markets, rather than a broad loss of confidence in gold.
India has stood out on the investment side. Gold exchange traded funds saw their assets rise by 15 tonnes in January alone, a pace that earlier took much longer. More importantly, those holdings have stayed invested even through volatile sessions, suggesting many investors are treating gold as a longer-term allocation.
On the consumption side, total gold demand in 2025 fell about 11% in volume compared with the previous year, as higher prices stretched household budgets. But in value terms, demand rose nearly 35%.
He expects the recent India-US trade agreement to open up opportunities for India’s gold jewellery industry, helping Indian manufacturers compete better with other global hubs such as China and Hong Kong and grow as value-added exporters.
Also Read: Gold, silver price fall brings relief to jewellery trade after ‘unsustainable’ rally: GJEPC
Also Read: Gold’s sharp rise looks like a bubble, warns economist William Lee
For the entire interview, watch the accompanying video
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