In Q2 2025, global gold demand by value rose 45% year-over-year to $132 billion. That surge came despite a relatively small increase in tonnage — just 3% to 1,249 tonnes. What caused the leap? Higher prices, driven by macro uncertainty and institutional flows.
Interestingly, jewelry demand — usually a major force — declined sharply. China and India, which typically lead the world in gold jewelry consumption, pulled back as prices soared. But investment and central bank activity helped offset that drop.
This trend suggests a new dynamic: gold’s role is shifting from adornment to asset. More buyers are focused on preservation of capital and hedging against inflation than fashion or cultural buying.
For serious investors, that’s a strong signal. Gold is behaving more like a financial instrument and less like a commodity — and that’s bullish for long-term holders.
