At a time when attention is focused on India’s gold purchases, data show demand for the precious metal in the form of bars and coins has risen sharply in recent years, exceeding the demand from gold exchange traded funds.
Data from the World Gold Council (WGC) show that bar and coin demand stood at 62.3 tonnes in the quarter ended March 2026 (Q1 CY26), accounting for about 41 per cent of India’s total gold demand during the period. The share of bars and coins in overall gold demand has risen from 34 per cent in the same quarter last year, well above the 20-30 per cent range they typically accounted for over the past decade
Annual demand from bars and coins has risen from 161 tonnes in 2016 to 280 tonnes in 2025. While the growth in demand was lacklustre prior to 2024, even recording negative growth in many years, demand seems to have picked up from 2024, in line with the sharp surge in the price of gold.
The demand for bars and coins was almost three times higher than gold ETF demand of 19.9 tonnes in the first quarter of 2026. Gold ETFs typically represent formal investment demand from registered individual and institutional investors. Buyers of gold coins and bars could be more broad-based and include jewellery buyers as well.
In value terms, bar and coin demand surged 129 per cent, from $4 billion in Q1 CY25 to $10 billion in Q1 CY26.
WGC defines demand as the gold acquired by final end-users in the country.
Structural shift
Kavitha Chacko, Research Head, WGC, said the trend signals a structural shift, with gold increasingly being viewed as an investment vehicle. “This shift is reflected in the demand mix: investment demand accounted for nearly 70 per cent of total gold demand in Q1, while jewellery’s share fell to around 30 per cent — the lowest level since 2000,” she said.
Elevated gold prices, particularly early in the quarter when gold outperformed other domestic assets, drove investment-led buying in bars and coins, Chacko added. Preference for coins and bars is also supported by the fact that, unlike ETFs, they can eventually be converted into jewellery.
Jateen N Trivedi, Vice-President, Commodity and Currency Research at LKP Securities, said the sharp rise in gold prices over the past year, coupled with a challenging equity market, has boosted investor interest in gold.
“People want to buy gold but, unlike jewellery, which often comes in larger denominations, bars and coins can be bought in small ticket sizes of ₹5,000-₹10,000. Moreover, there is minimal loss in terms of making charges. The new generation of investors in gold and silver often prefers bars and coins over jewellery,” he said.
However, India’s bar and coin demand remains below China’s, where demand touched 207 tonnes in Q1 CY26, compared with 124 tonnes in Q1 CY25.
(With inputs from intern Anu Keerthana)