Gold Demand Surges to All-Time High of 5,002 Tons

(MENAFN) Worldwide demand for gold surged to an unprecedented 5,002 tons in 2025—a 1% annual increase—as geopolitical instability and eroding dollar confidence drove investors toward the precious metal, the World Gold Council announced Thursday.

"Combined with the record-breaking run in the gold price—setting 53 new all-time highs during the year—this yielded an unprecedented value of $555 billion (+45% year-on-year)," the council stated.

Investment purchases skyrocketed 84% from the prior year to 2,175 tons, marking a dramatic shift in market behavior.

Exchange-traded fund inflows reached 801 tons—eclipsing jewelry consumption for the first time in history. Jewelry purchases plummeted 18% as soaring prices deterred consumers, with China's jewelry market collapsing 24% to its weakest level since 2009.

Physical bullion and coin acquisitions climbed 16% to 1,374 tons as investors stockpiled tangible assets. China and India together accounted for over half the growth in this segment.

Total supply expanded just 1% to a record 3,672 tons. Recycling activity contributed 1,404 tons—a 3% uptick—representing a muted response to gold's 67% price surge in dollar terms.

"Technology demand was stable despite disruption in the consumer electronics space, supported by continued growth in AI-related applications," the report noted.

The council projects sustained exchange-traded fund inflows and robust bar-and-coin demand ahead, supported by persistent geopolitical friction and elevated central bank purchasing.

Central Bank Acquisitions Decelerate
Official sector purchases dropped 21% to 863.3 tons from 1,092 tons the previous year.

While central bank buying remains at historically elevated levels, the pace has moderated from recent years' aggressive accumulation, the statement confirmed.

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